April 14, 2021

US SEC Examinations Division Issues Risk Alert on ESG Products and Services


On April 9, 2021, the Division of Examinations of the US Securities and Exchange Commission (SEC) issued a Risk Alert that highlighted its observations from its recent examinations of investment advisers, registered investment companies and private funds offering ESG products and services. The Risk Alert also provides observations of effective practices.

ESG investing has been an examination priority for the SEC in both 2020 and 2021. But that understates the matter. The SEC’s new webpage titled “SEC Response to Climate and ESG Risks and Opportunities” says it much better:

As investor demand for climate and other ESG information soars, the SEC is responding with an all-agency approach.

We highlight key takeaways from the Risk Alert and provide additional analysis on MayerBrown.com.


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