SEC Reportedly Dismantles ESG Task Force

Reportedly, the Securities and Exchange Commission (SEC) has disbanded the “Climate and ESG Enforcement Task Force” created in March 2021. The Task Force was deployed by then acting-Chair Allison Herren Lee as the Commission began to focus on ESG investing and disclosures. The Task Force brought actions against a variety of financial entities, including BNY Mellon Investment Adviser, Inc. and Goldman Sachs Asset Management, for omissions and failure to follow established policies and procedures related to ESG investments.

The Commission has yet to finalize the proposed rule, “Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices.” It is still unclear whether the Commission will move forward with the rule proposal as is, or at all. On March 6, the Commission approved “The Enhancement and Standardization of Climate-Related Disclosures for Investors” final rule, which applies to corporate issuers. The final rule was subsequently blocked by the Fifth Circuit Court of Appeals on March 15, and later the Commission voluntarily stayed implementation in April.

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