SEC’s Risk Alert On ESG Underscores Focus On Climate Disclosure Rules

Highlighting its pending efforts to mandate disclosure of climate risks, the Securities and Exchange Commission (SEC) is warning that it has found “potentially misleading statements” about investment funds’ environmental, social, and governance (ESG) practices and plans to closely evaluate key concerns that could put investors at risk. The April 9 risk alert , issued by the SEC’s Division of Examinations, “provides observations of deficiencies and internal control weaknesses from examinations of investment advisers and funds regarding ESG investing,” as well...