In “ESG Funds Provision Hinges on Another (Controversial) Proposal,” Ignites turned to investment management counsel Walé Oriola for his commentary on a rule proposed by the Securities and Exchange Commission (SEC), which has a provision that would require environmental, social and governance (ESG) funds to disclose the aggregate carbon emissions of their portfolios.
Other provisions within the ESG funds rule are less at risk, even if the issuer rule falls, said Oriola.
In the issuer rule, which states that affected issuers would have to calculate and disclose the emissions stemming from their direct production and consumption, Oriola explained that if a fund makes a promise on a certain ESG prerogative or goal, it must show how it plans to follow through with it.
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