Citing an increase in demand for information, the Securities and Exchange Commission has launched a new environmental, social and governance (ESG) investing resource page on its website.
According to the Commission’s announcement, the new resource page will pull together agency actions, along with the latest information about climate and environmental, social and governance (ESG) investing. “Our all-of-SEC approach looks at how climate and ESG intersect with our broader regulatory framework to get investors the information they need to plan for their financial future,” SEC Acting Chair Allison Herren Lee said in a statement announcing the new resource page.
The page will appear on the front page of SEC.gov and will be updated as the agency continues to respond to investors. As an example of what will appear on the site, the current page includes the SEC’s:
- request for comment on climate disclosure;
- statement on the review of climate-related disclosure;
- announcement on the Division of Examinations’ 2021 exam priorities;
- announcement on an enforcement task force focused on climate and ESG issues; and
- investor bulletin on ESG funds.
Without a doubt, all signs point to the SEC intensifying its focus on climate risk and ESG factors. In addition to the request for comment about whether current disclosures adequately inform investors, Gary Gensler, who has been nominated by President Biden to serve as Chair of the SEC, stated at his confirmation hearing before the Senate Banking, Housing and Urban Affairs Committee that, if confirmed, he would seek additional guidance on climate-related disclosures in public company filings. Gensler is currently waiting to be confirmed by the full Senate.
The SEC also recently announced that its 2021 examination priorities will include a greater focus on climate and ESG-related risks by examining proxy voting policies and practices to ensure voting aligns with investors’ best interests and expectations, as well as firms’ business continuity plans.
It’s also possible that the Department of Labor may soon ramp up its reexamination of the final rule on Financial Factors in Selecting Plan Investments now that Marty Walsh—who previously indicated that he plans to call for a reexamination of the final rule—has been confirmed as Labor Secretary.
