“In a videoconference, Chairman Gary Gensler told members of the European Parliament that the SEC is considering whether to require fund managers to disclose more information about the labeling of their environmental, social and governance, or ESG, investing products. Gensler said he has asked SEC employees to make recommendations for disclosure requirements.
Calls for public comment are expected to start by year’s end or early 2022.”
[COMMENTARY]There’s little doubt that some ‘sustainable’ funds are barely that at all, hardly differing in their stock components to ‘conventional’ counterparts. They can argue that their aim is to 1) engage with climate ‘laggards’ to encourage them to do better. And, or, 2) purposely invest in climate laggards that propose to do much better on ESG as these companies have often shown to have greater stock price appreciation than established high-performance ESG companies.
SEC Wants Sustainable Funds to Disclose More About Their Criteria, by Evie Liu, September 1, 2021, Barron’s, USA.