In remarks delivered today to the SEC Investor Advisory Committee, SEC Commissioner Pierce--one of the Republican appointees to the Commission--offered a critique of the proposed SEC rule re: "greenwashing," which is the...more
During the Senate Judiciary Committee's hearing on the nomination of Delaware Supreme Court Justice Montgomery-Reeves to the Third Circuit Court of Appeals, certain Republican Senators, including Grassley (R-Iowa) and Lee...more
Recently, both the Louisiana Attorney-General and the Indiana Attorney-General issued legal guidance that the consideration of ESG factors by investment firms likely would, in the absence of full disclosure, violate the...more
Nineteen state attorneys-general have announced their participation in an investigation spearheaded by Missouri Attorney-General Eric Schmitt into the ESG ratings produced by Morningstar Inc. and its subsidiary,...more
Climate Change Tort Litigation -
Beginning in 2017, an array of state and local governments have pursued claims against major fossil fuel producers — particularly the major oil companies (Chevron, Exxon, BP, Shell, and...more
Yesterday, the state treasurer of West Virginia formally barred his state from conducting business with five major financial institutions because, according to him, "[e]ach financial institution . . . has published written...more
On July 20, 2022 the SEC issued a press release concerning the resolution of an administrative proceeding in which the defendants "violated certain antifraud and reporting provisions of the federal securities laws and []...more
On June 22, 2022, in response to the SEC's release of its regulatory agenda , Republican SEC Commissioner Hester M. Peirce vigorously objected to the policies and regulatory goals announced by the Biden Administration's SEC. ...more
The West Virginia State Treasurer, Wiley Moore--a Republican--recently threatened six major financial institutions with a boycott on doing business with West Virginia government entities. This move by the West Virginia state...more
The AMF, the stock market regulator in France, recently reiterated its call for stricter regulation on a Europe-wide basis of the entities providing ESG ratings and other services. Specifically, the AMF stated that the...more
The international news media have publicly reported that German law enforcement has raided an asset manager concerning a "whistleblower's allegations that [the asset manager] sold investments as 'greener' or 'more...more
Recently, the States of Idaho and Utah --both controlled by the Republican Party--sent letters to S&P, one of the three major credit rating agencies, objecting to its inclusion of ESG criteria in its assessment of the...more
Today, the SEC issued two complementary press releases announcing certain proposed rules. First, the SEC announced "proposed amendments to enhance and modernize the Investment Company Act 'Names Rule'" that would "extend the...more
The SEC's Climate and ESG Task Force has now issued its first enforcement action. The SEC has brought a 76-page complaint in federal district court against Vale, S.A., a Brazilian mining company, alleging that Vale "ma[de]...more
SEC Chairman Gensler delivered a set of prepared remarks at the Ceres Investor Briefing on April 12, 2022, in which he defended the SEC's newly proposed rule concerning climate disclosures.
As expected, Chairman...more
Following-up on the extensive new mandatory climate disclosures the SEC issued last week, the SEC has now announced that "ESG" will be the second enforcement priority of its examination division during 2022. Specifically,...more
On March 21, 2022, the Securities and Exchange Commission (“SEC”) unveiled its long-anticipated proposed rules on climate disclosures, entitled “The Enhancement and Standardization of Climate-Related Disclosures for...more
3/31/2022
/ Biden Administration ,
Climate Change ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
GHG Auction ,
Proposed Rules ,
PSLRA ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Task Force on Climate-related Financial Disclosures (TCFD)
SEC Commissioner Alison Herren Lee recently availed herself of the opportunity presented by the re-opening of the comment file on the Dodd-Frank rule "requiring companies to disclose the relationship between executive...more
It has been publicly reported that the Dallas office of the SEC is currently engaged in an investigation of ESG disclosures by companies doing business with state government entities in Texas. Specifically, the SEC is...more
Last week, SEC Commissioner Crenshaw--one of the Democratic members of the SEC Commission--addressed the Center for American Progress and the Sierra Club, and availed herself of the opportunity to once again vocally express...more
Yesterday, SEC Commissioner Pierce--one of two Republican SEC Commissioners--availed herself of the opportunity presented by a statement concerning the budget of the Public Company Accounting Oversight Board ("PCAOB") to...more
In a recent speech, SEC Commissioner Crenshaw, one of the Democratic appointees to the Commission, focused on the role internal controls play in assessing and monitoring ESG risks. Specifically, after noting that the SEC...more
Fitch Ratings, one of the three major credit rating agencies, recently issued a report noting the increasing use of ESG metrics in credit agreements. As the report notes, these provisions are only now being incorporated into...more
Last week, Fitch Ratings announced the launch of new ESG ratings system, which is intended to use a "clear methodolog[y]," of a "full assessment of ESG performance" that "allow[s] for detailed comparability." This...more
Yesterday, SEC Chairman Gensler testified before the Senate Committee on Banking, Housing, and Urban Affairs. His remarks were wide-ranging, and touched on a number of different subjects, but importantly he re-affirmed the...more