Republicans ask SEC to drop ESG rules (2025)
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The House Financial Services Committee sent a letter last week to the Securities and Exchange Commission (SEC) asking the agency to rescind several Biden-era climate-related rules, including a proposed rule that would require additional ESG fund disclosures and a finalized rule requiring ESG-labeled funds to invest at least 80% of their assets in ESG-related securities.
The fight over ESG disclosures is part of a broader debate about the SEC’s role in climate policy. The outcome will shape how trillions in investment funds are labeled, marketed, and regulated.
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The SEC’s “Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices” rule was among ESG-related regulations in the rulemaking or proposal phase at the agency expected to be on the chopping block under the Trump administration. The rule was designed to prevent greenwashing and would create additional proxy and engagement disclosures for investment companies, as well as require funds with ESG terms in the name use such factors as a “significant or main consideration.” Certain ESG funds that consider environmental factors would also be required to disclose greenhouse gas emissions metrics in the portfolio, according to the proposal. Last year, 21 congressional Democrats — four senators and 17 House representatives — urged former SEC Chair Gary Gensler to finalize the greenwashing rule. Now, with Republicans in control of the executive branch, as well as the House and Senate, the rule is unlikely to ever reach a final stage.[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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