SEC Takes Aim at Greenwashing with New Proposals
The SEC has proposed two new ESG rules for asset managers.
(1) A Names Rule that would require investment funds using Sustainability or ESG terms in their names to adopt an investment policy that invests at least 80 percent of their assets in accordance with the investment focus the fund’s name suggests.
(2) funds that follow ESG strategies would need to make certain ESG Strategy Disclosures in prospectuses, annual reports, and adviser brochures.