A First Look At The SEC’s New ESG Funds Disclosure Rule

(Forbes) Close on the heels of the climate disclosures for companies, the SEC has issued a much-needed proposal on standardizing ESG disclosures for ESG funds. I believe greenwashing is rampant in ESG funds as I have documented in academic papers with colleagues and in Forbes columns before. The DWS greenwashing scandal is potentially just the tip of the iceberg.

The new ESG funds rule is a 350 odd page document. I just finished reading most of the salient requirements. I realize that the SEC has also issued a rule on naming of funds. I will address that rule in another column. In essence, the ESG fund disclosure rule proposes the following changes:

Read more here.

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