Tag: ESG

Another Example of ESG-Related Actions Leading to a Securities Lawsuit | The D&O Diary

In a recent post, I noted that while companies may face investor and regulator pressure to address ESG-related issues, ESG-related actions can also entail operational and financial risks — and litigation risks, as well. In the latest example of a company whose ESG-motivated actions went awry, leading to securities litigation, Wells Fargo has been sued in a securities class action…

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Small Businesses Plead With SEC to Show Restraint on Climate Rules – WSJ

Farms, independent manufacturers and other small businesses that don’t trade on stock exchanges normally don’t fall within the SEC’s purview; the agency regulates public companies and some other market participants. But small firms fear they will be forced to cough up heaps of information on their roles, however small, in emitting carbon because the SEC wants large public companies to…

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Money Funds Could Be Next Target In Greenwashing War – Bloomberg

“We have seen more and more ESG-related bonds and commercial paper programs, but the supply is still too small to be able to build a proper, ESG-only portfolio,” he said. Similar to other parts of the ESG industry, money funds are likely to be more susceptible to greenwashing as more and more funds proliferate the market. Expanded ESG disclosures and third-party oversight to…

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Can ESG-Motivated Company Actions Lead to Corporate and Securities Litigation? | The D&O Diary

ESG is a hot topic. There is a general perception in certain circles – including the D&O insurance community — that ESG awareness and activism are essential  attributes of good corporate citizenship. There is even a perception in certain parts of the D&O insurance community that strong ESG credentials makes individual companies better D&O risks. However, as the securities class…

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The SEC’s Authority to Pursue Climate-Related Disclosure

On behalf of the 30 undersigned law professors, all of whom teach and write on U.S. securities law and capital markets regulation, we welcome the opportunity to provide our views on the Commission’s recent proposal related to the enhancement and standardization of climate-related disclosures for investors (the “Proposal”). We focus on a single question—whether the Proposal is within the Commission’s…

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What’s “Controversial” About ESG? A Theory of Compelled Commercial Speech under the First Amendment

The SEC’s proposed climate disclosure rules create an opportunity to reflect on the limits that the First Amendment places upon securities regulation. As regular readers of this blog know, the SEC has proposed rules to make companies disclose their “climate risks” along with their greenhouse gas (“GHG”) emissions and certain climate-related financial metrics. Unlike existing rules, which require disclosure of…

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Investors Are Increasingly Skeptical of ESG. This Is Why – Bloomberg

ESG has become a punching bag for the far right, for disgruntled corporate executives and even industry insiders. But there’s one group whose growing disapproval might be the ultimate game changer. Retail investors are slowly starting to look under the hood of the $40 trillion environmental, social and governance industry that’s increasingly steering their savings, and many aren’t liking what…

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ESG Task Force “Lifts the Vale” on Its Scrutiny of ESG Disclosures

The SEC’s approach to the Vale litigation provides a roadmap for public companies to consider how ESG-related disclosures and statements will be scrutinized when the company is impacted by adverse events that are ESG-related. It illustrates that companies should be prepared for the SEC to closely scrutinize statements about risk in ESG disclosures such as sustainability reports or climate impact…

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SEC Charges BNY Mellon Investment Adviser for Misstatements and Omissions Concerning ESG Considerations

The Securities and Exchange Commission today charged BNY Mellon Investment Adviser, Inc. for misstatements and omissions about Environmental, Social, and Governance (ESG) considerations in making investment decisions for certain mutual funds that it managed. To settle the charges, BNY Mellon Investment Adviser agreed to pay a $1.5 million penalty. The SEC’s order finds that, from July 2018 to September 2021, BNY…

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