SEC Targets ESG Funds With Pair of Proposals – PracticalESG

It also means there’s an opportunity for ESG-focused companies that are seeking capital. There may be a big rush to ESG assets if funds are faced with the choice between compliance or a name change. The ESG investment fund space may also shrink, which is what happened in the EU when regulators realized that so-called ESG funds were not actually performing screens. As I noted in my book, Killing Sustainability (available to PracticalESG.com members on our “Guidebooks” page):

“The EU Commission passed the Sustainable Finance Disclosure Regulation (SFDR), which became effective March 2021.  in anticipation of the effective date, however, ESG-tagged investments in Europe shrank by $2 trillion from $14 trillion in 2018 as funds deleted references to ESG, responsible or green in their names/descriptions.”

Source: SEC Targets ESG Funds With Pair of Proposals – PracticalESG