Invesco fined over ESG claims (2024)
| Environmental, social, and corporate governance |
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What’s the story?
The SEC fined Invesco Advisers $17.5 million over its ESG investment claims. The agency argued Invesco’s claims were unprovable and likely false and misleading to investors.
Why does it matter?
Although the SEC closed its ESG task force several weeks ago, this action against Invesco and similar fines against Wisdom Tree Asset Management show that the agency intends to continue enforcement activity against false or deceptive ESG claims by financial firms.
What's the background?
See this newsletter’s coverage of the SEC’s action against Wisdom Tree here.
Read more
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From 2020 to 2022, the firm told clients that between 70% and 94% of parent company Invesco Ltd.’s AUM were 'ESG integrated,' the agency said in a news release Friday. In a 2020 presentation to a large wealth management firm, Invesco Advisers touted 'Our Commitment to ESG' and called itself a 'Trusted Partner in Responsible Investment,' according to the SEC’s order. But the regulator alleged that a 'substantial' amount of assets were held in passive exchange-traded funds that didn’t consider ESG factors. In addition, the SEC claimed Invesco Advisers lacked any written policy on what ESG integration meant. 'Companies should be straightforward with their clients and investors rather than seeking to capitalize on investing trends and buzzwords,' Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement, said in a statement.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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