SEC Task Force to Pursue Greenwashing and Exaggerated Sustainability and Climate Claims

Per this article, in March 2021, the SEC has formed a Climate and Environmental, Social and Governance (ESG) Task Force (the ESG Task Force) that will identify and investigate ESG-related violations.

Per Kelly Gibson, the Director of the SECs Philadelphia Regional Office, the ESG Task Force effort in 2022 will be concentrated on detecting and bringing enforcement actions for “greenwashing,” which she defined as “exaggerating” a “commitment to, or achievement of climate . .  . related goals.”

This ties to Bill HR1187, which has passed the US House of Representatives and is with the US Senate.  HR1187 will require US governments (ie, city, county, state and federal), public companies, and any private companies that serve same, to have a sustainability program and ESG plan.

At some point in the near future, ALL organizations will need to research what it takes to have a legitimate sustainability program and ESG plan.  This PPP gives guidance on what an organization should look for in a program.