08.19.22

BlackRock Warns Wall Street Watchdog New ESG Rule Could Harm Investors

by: Katanga Johnson

BlackRock has warned the U.S. Securities and Exchange Commission (SEC) that its proposed rules aimed at fighting "greenwashing" by fund managers will confuse investors. The rules aim to stamp out unfounded claims by funds about their environmental, social and governance (ESG) credentials and to create more standardization around ESG disclosures. While BlackRock acknowledged the need to boost oversight, it questioned the SEC's demand for more details on how funds should categorize strategies and describe their ESG impact, arguing such details could mislead investors about how much ESG really matters when managers pick stocks and bonds. Also at issue is how the SEC's proposal outlines how ESG funds should be marketed and how investment advisors should disclose their reasoning when labeling a fund.

Read the full article on Reuters