There’s now little doubt that the US Securities and Exchange Commission actually means business in its bid to crack down on misleading claims by managers of ESG funds. Under Chair Gary Gensler, officials have been demanding that money managers explain the standards they supposedly use to classify ESG-labeled funds. When the examination division spots potential misconduct, it typically alerts the agency’s enforcement unit for further investigation.
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The SEC war on greenwashing has begun
“These are the first ripples of a wave of regulatory interventions that we are likely to see in the coming months,” said Sonali Siriwardena, partner and global head of ESG at law firm Simmons & Simmons.
