On March 4, 2021, the Securities and Exchange Commission (SEC) announced the creation of their Climate and Environmental, Social, and Governance Task Force (Task Force). This Alert addresses the purpose of the task force, discusses recent enforcement actions and rule promulgation, and highlights certain areas of Environmental, Social, and Governance (ESG) enforcement moving forward.
Purpose of the Task Force
The Task Force is part of the SEC’s Division of Enforcement and was established to, among other things, address ESG-related misconduct. Specifically, the Task Force was established to ensure clarity and develop initiatives to support reliable ESG-related disclosure and investment.