Davis Polk partner and ESG practice head Joe Hall was quoted in Ignites on the SEC’s potential amendments to the rules governing funds’ names and ESG disclosures. Joe noted, “There’s been a concern for a long time at the SEC [about] what funds call themselves, whether green or ESG-focused.”

He also added that the proposed amendment to ESG disclosure rules is “a proposal that is easy to square with the core investor mandate” and “if retail investors are investing in funds that are perceived as doing good in terms of ESG, and if the managers are straying to improve fund performance, it’s easy to make the argument that investors are being misled.”

SEC May Propose Names, ESG Rules This Week,” Ignites (May 23, 2022) (subscription required)