FINANCE BRIEF: Shutdown Threatens SEC’s ESG Oversight Momentum

SEC Chair Gary Gensler is gaining momentum on his ESG agenda with new investment fund names rules targeting greenwashing, just as a looming government shutdown threatens to pause work on climate disclosure mandates and other rulemaking.

The SEC on Sept. 20 adopted regulations intended to better safeguard investors from funds with misleading environmental, social, and governance names and other deceptive labels. ESG funds, for example, now must invest 80% of their assets in ways their names suggest, in keeping with requirements for many other investment products.

These are the first ESG-related rules finalized this fall. The agency is looking to ...