“The proposal on ESG disclosures for investment advisers and registered investment companies would introduce requirements for advisers and registered funds that consider ESG factors in their investment processes to disclose more about those factors’ role in investment decisions.

The Names Rule proposal would extend the 80% investment policy requirement to registered funds with names that suggest the fund focuses on investments/issuers with particular ESG characteristics.”

[COMMENTARY]Though, in general, I welcome the thrust of these regulations I can’t help wondering if we’re going into ‘overkill’ though! My concern is that regulators create such regulatory tightness that it kills the creativity of the sustainability, and ESG, ethos. Plus, the extra costs incurred in conforming to the regulations become a penalty for advisors and investors vis-a-vis ‘conventional’ funds and investments.
Proposed ESG Disclosure Requirements for Investment Advisers and Investment Companies, by Laura Ferrell, Sarah Fortt, and Betty Huber, June 20, 2022, Harvard Law School Forum on Corporate Governance, USA.