Funds that claim to focus on ESG factors like the environment and workers’ rights need to show their work.
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Dear Green American,
Did you know that many investment funds and advisors lie about how green their retirement funds are?
It's true.
But the Securities and Exchange Commission (SEC) has proposed a rule to prevent investment funds and advisers from using misleading marketing and advertising tactics to sell Environmental, Social, and Governance (ESG) investment funds to investors, including workers saving for retirement.
If finalized, the rule will tackle rampant greenwashing and other exaggerated claims about what a fund’s investment strategy really is (or isn’t). For example, funds that have names like “Green” or “Sustainable” will need to describe their strategies and how they implement them.
But here’s the catch: If the SEC does not finalize the rule soon, then it may be subject to a Congressional Review Act (CRA) resolution, a tool that is used by Congress to overturn federal regulation. If enough of us speak out right now, we can encourage the SEC to do the right thing and issue a strong ESG rule that can protect retirement savers and beat the CRA clock.
Submit a public comment right now to the SEC: Protect working people’s retirement savings by cracking down on misleading marketing and sustainability claims.
TAKE ACTION
Environmental, social, and governance factors can and do present significant financial risks (and opportunities) to companies and investment funds, and many investors – especially those with a long-term view, such as retirement savers – seek out funds that place an emphasis on managing those risks.
Unfortunately, some Wall Street investment managers think they can dupe investors by changing their name without changing their practices. If a fund claims it will protect the environment or promote worker well-being, investors have a right to know more about how it will accomplish those goals, and whether or not it is making progress.
Fundamentally, this is about truth in advertising, and investors need access to accurate and reliable information so they are not misled and can select investments that meet their goals and needs.
Submit a public comment right now to the SEC: Protect working people’s retirement savings by cracking down on misleading marketing and sustainability claims.
TAKE ACTION
Yours for a green economy,
..................
Cathy Becker
Responsible Finance Campaign Director
Green America
1612 K St NW #1000, Washington, DC 20006
(800)-58-GREEN www.greenamerica.org
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