The SEC May proposed two rule changes that would prevent misleading or deceptive claims by US funds on their environment, social, and corporate governance (ESG) qualifications and increase disclosure requirements for those funds.
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These proposals are subject to public feedback and come in the middle of mounting concerns that some funds seeking to profit from the rise in ESG investing practices have misled shareholders over what’s in their holdings.
In the video below, you will see that the SEC will mandate ESG Scores.
Watch:
