SEC Seeks Public Commentary on Climate Rule
This spring the SEC voted to advance a set of proposed rules requiring climate disclosure statements for all SEC-registered companies. The rule would mandate public companies to disclose standardized information about their greenhouse gas pollution. Additonally, it would require companies be more transparent with investors about climate-related risks. The SEC reported significant interest in the proposed rule “from a wide breadth of investors, issuers, market participants, and other stakeholders”.
Riverwater Submits Letter in Support of Proposed Climate Rule
Riverwater submitted a letter in support of the proposed rule. Our letter stated in part, “it is imperative that companies understand their emissions in order to assess the risk presented to their business as the physical, regulatory, and reputational risks associated with climate change become more intense.” Read our full letter here.
Increased Scrutiny of ESG Practices by SEC
The proposed greenhouse gas disclosure rule came against increased attention on greenwashing. It was against this backdrop that the SEC created an SEC ESG Task Force to investigate ESG-related violations among investment companies claiming to invest on an ESG (environmental, social and governance) basis. These actions are a direct response to the increased investor interest in socially responsible investing in 2021. The SEC simply wants to ensure that advisors who claim to be ESG investors actually have a proper and transparent process for incorporating ESG factors into their investment decisions.
At Riverwater, we consider ESG policies, practices, and outcomes, alongside traditional investment criteria, when evaluating potential investment candidates. For more information on our responsible investment process, click here.