CAP’s Comment on the SEC Proposed Rule on Disclosures by Certain Investment Advisers and Companies About ESG Investment Practices
On August 16, 2022, the Center for American Progress submitted comments to the U.S. Securities and Exchange Commission (SEC) regarding the SEC’s proposed rule on enhanced disclosures by certain investment advisers and investment companies about environmental, social, and governance (ESG) investment practices. The proposal describes disclosures that the SEC intends to require investment companies, business development companies, and investment advisers to provide to their investors and clients. Such disclosures would pertain to whether and how these companies and groups consider ESG issues, including climate risks, when selecting or recommending investments, engaging with issuers, or voting pursuant to shareholder proxies. CAP strongly supports the SEC’s general approach and recommends expanded coverage to all investment advisers and funds, including a requirement that all investment funds disclose their share of the Scope 1, 2, and 3 greenhouse gas emissions of the companies in their investment portfolios.
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Senior Director, Tax Policy