Tag: ESG

SEC Drops ESG From List of Compliance Priorities in 2024

SEC examiners are downplaying environmental, social, and governance investing as a focus when inspecting firms for compliance with agency rules after years of listing ESG as a priority. The Securities and Exchange Commission made no direct reference to ESG in its 2024 Division of Examinations priorities released Monday for investment advisers, brokers and other securities industry members. The SEC listed…

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House Republican Comer Demands SEC Turn Over Documents on ESG, EU – Bloomberg

A top House Republican is threatening to subpoena the Securities and Exchange Commission for any documents about US involvement in crafting European Union environmental, social and governance regulations that GOP lawmakers say harm American businesses. House Oversight Committee Chairman James Comer expressed concern to SEC Chairman Gary Gensler in a letter Thursday that the agency is trying to “stonewall” the…

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What’s in a Name? A Lot, Says the SEC | Crowell & Moring LLP

On Wednesday the SEC adopted amendments to the “Names Rule” that are meant to promote “truth in advertising” according to SEC Chair Gary Gensler. Specifically, the amendments require funds with names that reference a thematic investment focus (such as incorporation of Environmental, Social, and Governance (“ESG”) factors), or that suggest an investment portfolio with certain characteristics (such as “growth” or…

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Kroll’s Message for Haters: ESG Makes Money for Investors – Bloomberg

While doubts about the reliability of ESG ratings persist, Kroll, a financial advisory firm that focuses on governance, risk and transparency, has published a 105-page report that says companies with higher ESG ratings “generally outperformed” those with lower ratings during the nine-year period ended Dec. 31, 2021. In its study, Kroll examined more than 13,000 companies across a variety of…

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ESG-Related Suit Against Unilever Based on Ben & Jerry’s Board’s Resolution Dismissed | The D&O Diary

As the phenomenon of ESG-related litigation has developed and evolved in recent months, it has unfolded that the lawsuits are not, as was expected, being filed against ESG laggards, but instead are being filed against companies that were proactive on ESG-related issues. One of the cases illustrating this development is the securities lawsuit filed against the consumer products company Unilever,…

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Gensler Lags Predecessors in SEC Rulemaking as ESG Plans Linger

The SEC under Chair Gary Gensler is issuing regulations at its slowest pace in decades for a new presidential administration, risking leaving climate disclosure rules and other planned ESG reporting priorities unfinished. The Securities and Exchange Commission has adopted only 22 rules since Gensler became the agency’s leader in April 2021, according to a Bloomberg Law analysis. The tally was…

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EU Adopts Mandatory ESG Reporting Requirements | The D&O Diary

The SEC has not yet adopted the long-anticipated final version of its proposed climate change disclosure guidelines, although there is some speculation that the final guidelines will be adopted in the Fall. In the meantime, however, sustainability reporting standards are going into effect elsewhere, with important ramifications for all companies. On July 31, 2023, the European Commission adopted the first…

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SEC lawyers subpoena fund managers over ESG disclosures | Financial Times

The US Securities and Exchange Commission enforcement division has sent document requests, including subpoenas, to several asset managers relating to their environmental, social and governance investment marketing this year, lawyers said, suggesting a potential crackdown looming for the sustainable fund world. Among the SEC’s areas of inquiry are conventional investment funds that have repurposed themselves as ESG funds, the asset…

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