The Tide Continues to Turn on ESG

As Bloomberg Law recently reported, the SEC quietly disbanded its Climate and ESG Task Force, which had been active since March 2021 and played a key role in bringing enforcement actions against misleading environmental, social, and governance disclosures.  

This move appears to be part of an overall shift in terminology and political positioning. The SEC, like many companies and institutional investors, seems to be moving away from the term “ESG” at least in part due to political backlash. Despite the dissolution of the task force, the SEC maintains its vigilance on ESG-related disclosures and may still bring enforcement actions when necessary.