SEC Releases Proposed Rules for ESG Investors on Deceptive Naming and Enhanced Disclosure

Lisa Woll, CEO of US SIF, released a statement.

WASHINGTON, D.C., May 25, 2022 – US SIF: The Forum for Sustainable and Responsible Investment, the leading voice advancing sustainable investing, today released a statement about two rules proposed by the SEC. The proposals would:
1)  Amend rules and reporting forms concerning funds' and advisers' incorporation of environmental, social, and governance (ESG) factors in prospectuses, annual reports and advisor brochures. The intent is to promote consistent, comparable, and reliable information for investors; and   
2)  Propose amendments to the Investment Company Act “Names Rule” to expand the requirements of the 80% rule and add new enhanced disclosure and reporting requirements.
In response, Lisa Woll, CEO, US SIF said:
“Today was a significant day for sustainable investors with the SEC's release of two proposals to prevent misleading or deceptive names and enhance disclosures by investment companies and advisors about ESG investment practices.  

“Since our 2015 report on ‘Unlocking ESG Integration,' US SIF has clearly stated the need for transparency and specificity around the inclusion of ESG criteria in portfolios.

“With the significant growth in the field of sustainable investment and investor requests for more disclosure on issues like human capital management and climate change, the timing is right to address enhanced disclosures on ESG investment practices and update the Names Rule.  

“We will be carefully reviewing the two proposals and talking with our members about the implications of these proposals. Our in-person conference from June 6-8 also offers an excellent opportunity to discuss these issues with hundreds of sustainable investors and other stakeholders.”
About US SIF and the US SIF Foundation
US SIF: The Forum for Sustainable and Responsible Investment is the leading voice advancing sustainable investing across all asset classes. Its mission is to rapidly shift investment practices toward sustainability, focusing on long-term investment and the generation of positive social and environmental impacts. US SIF members include investment management and advisory firms, mutual fund companies, asset owners, research firms, financial planners and advisors, community investing organizations and nonprofit associations.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF, including offering trainings for advisors and other financial professionals on the Fundamentals of Sustainable and Impact Investment. The US SIF national conference, FORUM 2022, will be held at the Hyatt Regency Tamaya in NM from June 6-8. 
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