Organizations Involved: Institute for Policy Integrity
Source: Securities & Exchange Commission
Abstract
The SEC has proposed a series of new disclosures for investment companies regarding their Environmental, Social, and Governance (ESG) activities. These disclosures would reduce “greenwashing” – a practice where companies misrepresent the sustainability of their investments in order to advertise to investors looking to invest in green funds – by providing investors with comparable and decision-useful information about fund practices. The Institute for Policy Integrity submitted comments on the SEC’s economic analysis of the Proposed Rule. Policy Integrity commended the Commission for complying with relevant case law and internal guidance on cost-benefit analysis and recommended steps that the SEC could take in the final rule to provide additional clarity and context regarding its findings.
