Recent Action Shows SEC Enforcement Still Focused On ESG

A recent Viewpoints article discussed the disbanding of the Climate and ESG Task Force (the "ESG Task Force") in the Securities and Exchange Commission's (the "SEC's") Division of Enforcement, which had formed in early 2021 under then-Acting Chair Allison Lee and continued under Chair Gary Gensler.

That Viewpoints article encouraged clients to continue to consider their ESG-related risks and applicable disclosures for accuracy, ensure applicable compliance policies are adopted (as appropriate) and followed with relevant testing conducted, notwithstanding the disbanding of the ESG Task Force. This was because, in part, that SEC staff and spokespersons have indicated that the disbanding of the ESG Task Force should not be viewed by the industry as a change in substantive regulatory approach.