Division of Enforcement forms Climate and ESG Task Force

Mar 15, 2021
Audit Financial reporting SEC matters

The SEC Division of Enforcement recently formed a Climate and ESG Task Force to develop initiatives for proactively identifying disclosure and compliance misconduct related to environment, social and governance (ESG) issues. To identify potential violations, the task force will coordinate the effective use of sophisticated data analysis to mine and assess information across registrants. The initial focus will be on the identification of material gaps or misstatements in issuers’ disclosure of climate risks under existing rules.

The task force also will analyze disclosure and compliance issues relating to investment advisers’ and funds’ ESG strategies. In addition, the Climate and ESG Task Force will evaluate and pursue tips and whistleblower complaints on ESG-related issues, and provide expertise and insight to teams working on ESG-related matters across the Division.