SEC Proposes New ESG Disclosure Requirements

Washington D.C. (June 17, 2022) - On June 17, 2022, the U.S. Securities and Exchange Commission (SEC) published two proposed rules targeted at environmental, social, and governance (ESG) investment disclosures. The proposed rules would require certain investment advisers and companies to provide specific disclosures regarding their ESG investment practices and, where applicable, information substantiating their use of ESG-related names. Among other items, the proposed rules call for enhanced greenhouse gas (GHG) emissions disclosures and updated investment policies that would require companies or funds with names implying a focus on ESG investments to invest the majority of their assets into investments of that type. The proposed rules will be open for public comment for the next 60 days, closing on August 16.