On June 17, 2022, the Securities and Exchange Commission (SEC) proposed amending rules and forms to enhance disclosure requirements for ESG (environmental, social, and governance) investment practices. The proposed rules would apply to certain registered investment advisers, advisers exempt from registration, registered investment companies, and business development companies.
The proposal would categorize various ESG strategies and require funds and advisors to provide more specific disclosures. For funds focused on the consideration of environmental factors, the proposal would require the disclosure of the greenhouse gas emissions associated with portfolio investments. Furthermore, the proposal would require funds claiming specific ESG impacts to describe the specific impacts they seek to achieve and summarize their progress in achieving them.
On October 18, 2022, the SEC reopened the comment period due to technical errors in the initial submission process. The SEC is now accepting comments until November 1, 2022.