Comments in response to the SEC’s proposal for enhanced ESG disclosure practices by funds
The Bottom Line: The proposal for enhanced ESG disclosures by funds is a step in the right direction but some modifications would strengthen the framework. The following response and recommendations were submitted on August 15, 2022 to the Securities and Exchange Commission (SEC) for consideration in response to the SEC’s Enhanced Disclosures by Certain Investment […]
Investors should conduct due diligence even as SEC increases scrutiny of ESG funds
The Bottom Line: The increased SEC scrutiny of ESG funds will bolster confidence in sustainable investment products but investors should conduct their own due diligence. Introduction and summary On June 10, 2022, the Wall Street Journal reported that the Securities and Exchange Commission (SEC) was conducting a civil investigation of Goldman Sachs Asset Management (GSAM), […]
The INDEX Act, a gain for sustainable investors?
The Bottom Line: If enacted, the Investor Democracy is Expected (INDEX) Act will potentially give sustainable investors an influential voice by shifting proxy voting power. Summary/Conclusion The concentration of corporate voting power in the hands of a small number of investment advisers who are perceived to be aligned with an ESG agenda is engendering pushback. […]
FSOC report addresses financial risks due to climate change
The bottom line: FSOC report acknowledges threat of climate change to financial stability and promulgates recommendations that should be beneficial to asset owners and investors. FSOC report issued last week, which recognizes the emerging threat of climate change, sets out specific recommendations on risk measurement, quantification and disclosures On October 21st the Financial Stability Oversight […]
SEC Issues ESG Risk Alert
The Bottom Line: The SEC’s Division of Examinations (DE) issued an advisory Risk Alert highlighting observations from recent exams focusing on ESG products and services. Confusion in the Marketplace On April 9th, the Securities and Exchange Commission’s Division of Examinations (DE) issued an advisory Risk Alert for the purpose of highlighting observations from recent exams […]
SEC subcommittee introduces preliminary ESG reporting and disclosure recommendations for funds
The Bottom Line: SEC Asset Management Advisory subcommittee introduced preliminary set of potential ESG investment product reporting and disclosure recommendations at December 1, 2020 meeting. SEC subcommittee introduced preliminary set of potential ESG investment product reporting and disclosure recommendations At the December 1, 2020 SEC meeting the ESG subcommittee of the Asset Management Advisory Committee […]
DOL issues proposal to address ESG investment issues in retirement plans
The Bottom Line: DOL issues proposal to address ESG investment issues in retirement plans that reflects some superficial conclusions and fundamental misunderstanding regarding ESG investing. Department of Labor issues proposal to address ESG investment issues in retirement plans In a new proposal with a 30-day comment period issued by the Department of Labor (DOL) on […]
SEC Investor Advisory Committee Recommends Updating ESG Reporting
The Bottom Line: Contemplated for close to 50 years, SEC Investor Advisory Committee recommends updating reporting requirements of issuers to include material, decision-useful ESG factors. Recommendation to update reporting requirements to include material, decision-useful ESG factors supported by five reasons is greeted with some degree of skepticism At the May 21, 2020 Investor Advisory Committee […]