U.S. Markets open in 7 hrs 37 mins
  • S&P Futures

    3,791.25
    -30.00 (-0.79%)
     
  • Dow Futures

    30,801.00
    -198.00 (-0.64%)
     
  • Nasdaq Futures

    11,585.00
    -106.00 (-0.91%)
     
  • Russell 2000 Futures

    1,707.70
    -13.70 (-0.80%)
     
  • Crude Oil

    110.02
    +0.24 (+0.22%)
     
  • Gold

    1,816.80
    -0.70 (-0.04%)
     
  • Silver

    20.68
    -0.05 (-0.26%)
     
  • EUR/USD

    1.0457
    +0.0013 (+0.1255%)
     
  • 10-Yr Bond

    3.0930
    0.0000 (0.00%)
     
  • Vix

    28.16
    -0.20 (-0.71%)
     
  • GBP/USD

    1.2147
    +0.0025 (+0.2029%)
     
  • USD/JPY

    136.4240
    -0.1210 (-0.0886%)
     
  • BTC-USD

    20,007.76
    -157.59 (-0.78%)
     
  • CMC Crypto 200

    429.98
    -9.68 (-2.20%)
     
  • FTSE 100

    7,312.32
    -11.09 (-0.15%)
     
  • Nikkei 225

    26,378.49
    -426.11 (-1.59%)
     

SEC Working On Pending Rules On Misleading ESG Investment Claims: FT

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Securities and Exchange Commission is preparing rules to specify disclosures to be made by investment funds with terms such as environmental, social, and governance (ESG), sustainable, or low-carbon in their names.

  • Financial Times writes that the broader ESG investing category covers environmental and climate considerations, "impact" investing for the social good, and funds that screen out industries such as tobacco or firearms.

  • On Monday, SEC announced a $1.5 million legal settlement, first related to funds' ESG descriptions, against BNY Mellon's investment adviser division over allegations of misstating and omitting information about ESG criteria for mutual funds it managed.

  • According to Morningstar, in the US, 65 funds have been repackaged into ESG funds since the beginning of 2019.

  • Funds struggling to attract inflows changed their names and prospectuses to ride the sustainable investing wave, said Jon Hale, director of sustainability research for the Americas at Sustainalytics, a Morningstar company.

  • Related: 'Ridiculous,' 'Wacktivism:' Cathie Wood, Elon Musk React To Tesla's Removal From S&P 500 ESG Index

  • Recently, Tesla Inc (NASDAQ: TSLA) was booted out of the S&P ESG index, after which Elon Musk called ESG a scam.

  • The commission is also catching up with regulators in Europe. The EU's sustainable finance taxonomy, which would establish a list of eco-friendly economic activities, is expected to be approved by the European parliament in July.

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.