“The U.S. Securities and Exchange Commission has proposed two rules that, if adopted, will help investors better identify, understand, and compare funds that feature environmental, social, and governance criteria in their investment process.”

[COMMENTARY]Let me first say that I agree with stricter rules deterring greenwashing! Now should these new SEC rules be adopted I believe two things will happen. Firstly, there could be relatively fewer funds claiming ESG credentials. Secondly, fees will likely rise as fund expenses increase.

(Funds are already implying potentially higher costs. SeeSEC Greenwashing Rule Gives Funds Chills Over Emission Reporting, Bloomberg Law.)
SEC Proposes New Rules for Sustainable Funds Aimed at Standardizing ESG Disclosures, by Jon Hale, May 27, 2022, Morningstar, USA.