The SEC approved the new Investment Company Names Rule on a 4-1 vote yesterday. The rule aims to help rein in ‘greenwashing’ by investment funds where a fund’s name falsely suggests investment in companies meets certain environmental, social, and governance (ESG) criteria. It’s an important first step, but a key provision was omitted: investment firms can still use ESG-related terminology for funds that merely consult ESG metrics. See BlackRock’s Sustainable Advantage Large Cap Fund and this report by As You Sow for more examples. Chair Gensler said the commission is still considering including it in the pending ESG disclosure rule.
- Bloomberg: BlackRock, State Street Among Money Managers Closing ESG Funds | Ron DeSantis Pledges $2 Gasoline, More US Fuel Production
- Bloomberg Law: Risk From ESG Bond ‘Exit Clauses’ Is Overstated, Study Finds | SEC Rule Cracks Down on Misleading ESG, Growth Fund Labels
- Business Insider: The vicious cycle of homeowners insurance: It’s increasingly expensive to protect homes in the disaster-prone areas that need it most
- CBS News: Climate change could make insurance more expensive for homeowners
- CNBC: UK PM Rishi Sunak announces shift on climate policies, waters down targets | Biden launches American Climate Corps to train the green workforce
- CNN Business: U.S. insurance premiums could surge due to severe natural disasters
- E&E News: Price of entry to today’s climate summit? More action | SEC finalizes first climate-related rule, targets ‘greenwashing’
- Financial Times: How regulators have relinquished their work to corporate executives | SEC cracks down on misleading fund names over industry objections | EU to ban ‘climate neutral’ claims by 2026
- The Hill: Worsening climate disasters could spark insurance rate surges for millions | X ranks last on climate change misinformation scorecard
- Impact Alpha: The Brief: Climate Week’s brighter outlook, naming rules for ESG funds, European climate tech VC, impact notes, messiness and mutuality in measurement
- Investment Week: US SEC unveils ESG labelling rules for mutual funds
- Investopedia: SEC Tightens Rules To Ensure a Fund’s Name Accurately Represents Its Portfolio
- IR Magazine: EU parliament to crack down on greenwashing claims
- MarketWatch: SEC cracks down on misleading fund names and ‘greenwashing’
- The Messenger: 39 Million US Properties Could Face Higher Insurance Costs From Climate Risks
- Miami Herald: New study warns of ‘climate insurance bubble.’ Is that driving costs up in Florida?
- National Association of Plan Advisors: New SEC Rules Crack Down on Greenwashing, Misleading Fund Names
- NBC News: How climate change is impacting home insurance premiums | The unexpected places where extreme weather threatens homeowners’ pocketbooks
- The New York Times: Rishi Sunak to Weaken U.K. Climate Targets as Election Approaches
- Politico: Why Newsom and Bonta were the ones to take on Big Oil | DeSantis: Humans are ‘safer than ever’ from effects of climate change
- Reuters: UN chief laments ‘naked greed’ of fossil fuel interests, countries criticize big polluters | UN-backed GCF’s chief unveils new blueprint for climate fund | Republican hopeful DeSantis slams EVs, climate “fear” in energy speech | US SEC cracks down on funds “greenwashing” with new investment requirement
- Triple Pundit: Everybody’s Talking About California at Climate Week 2023
- The Wall Street Journal: SEC cracks down on misleading fund names over industry objections | More Companies Are Disclosing Their ESG Data, but Confusion on How Persists
- The Washington Post: DeSantis’ $2 Gasoline Dream Should Terrify Texas
- Workers World: Portlanders protest city’s deals with fossil fuel companies
- Financial Times: Climate decision-making is caught in a Catch-22
- Yale Climate Connections: California’s climate disclosure bill could have a huge impact across the U.S.
- Corporate Accountability tweeted: Our new investigation with @GuardianUS reveals nearly 80% of the top 50 voluntary carbon credit projects are likely junk. And instead of addressing the climate crisis, these offsets may fuel further emissions and cause harm. #FalseSolutions
- Newsmax tweeted: DISNEY’S DOWNFALL– Indiana Republican Sen. Mike Braun told NEWSMAX that Disney’s appeasement to ESG scores and its falling stock price make it a risk to potential investors.