New SEC enforcement task force targets ESG

'The task force will also analyze disclosure and compliance issues relating to investment advisers’ and funds’ ESG strategies'

Some 22 SEC staffers are forming a new climate and ESG task force within the Division of Enforcement, the Commission announced March 4. The revelation follows the Commission’s recent hiring of a climate/ESG policy advisor, Satyam Khanna, in February.

The new task force will look at “ESG-related misconduct,” including issuer “misstatements” in disclosures. “The task force will also analyze disclosure and compliance issues relating to investment advisers’ and funds’ ESG strategies,” the SEC stated.

“The task force announced today will play an important role in enhancing and coordinating the efforts of the Division of Enforcement, the Office of the Whistleblower, and other parts of the agency to bolster the efforts of the Commission as a whole on these vital matters,” said SEC acting chair Allison Herren Lee.