Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • Former AIG Exec McElroy Faces Sex Assault Charges
  • Aon Promotes Reinsurance Leaders
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

SEC to Unveil Rule to Crackdown on Funds ESG ‘Greenwashing’

By Katanga Johnson and Ross Kerber | May 25, 2022
Email This Subscribe to Newsletter
  • Article

The U.S. Securities and Exchange Commission (SEC) on Wednesday will propose rule changes aimed at stamping out unfounded claims by funds on their environmental, social and corporate governance (ESG) credentials, and enforcing more standardization of such disclosures.

The proposal will outline how ESG funds should be marketed and how investment advisors should disclose their reasoning when labeling a fund, according to people who have spoken to the SEC on the measures.

The proposal would also mandate that investment funds with terms such as “ESG,” “sustainable” and “low-carbon” in their names disclose the criteria and underlying data used to support the label, the people said.

While the new rules will affect all funds, their target is ESG funds which drew a record $649 billion globally through Nov. 30, up from $542 billion and $285 billion in 2020 and 2019, respectively, according to Refinitiv Lipper data.

Republicans Have a New Enemy No. 1: ESG Investing | Tesla, Echoing Musk, Says ESG Metrics Are ‘Fundamentally Flawed’

Regulators and activists have become concerned that U.S. funds looking to cash in on the popularity of ESG investing may be misleading shareholders over their products’ underlying holdings, a practice known as “greenwashing.”

“We are hopeful that the new rule will require fund managers to follow basic naming guidelines. This will help to eliminate confusion and misleading marketing,” said Andrew Behar, president of climate activist group As You Sow, who has discussed the potential rules with the SEC.

He said market participants have to date exploited a loophole in the current rules when naming funds.

SEC Chair Gary Gensler has said that when it comes to sustainability-related investing, asset managers might confuse investors with conflicting names or certain terms or criteria they use.

Industry groups warn, however, that the agency’s aim to standardize ESG labels could reduce investor choice.

“We object to actions that would … substitute a regulator’s judgment about investment strategy for that of professional fiduciaries,” said Janay Rickwalder, a spokeswoman for the Investment Adviser Association, adding that her group has discussed the matter with the SEC on these themes.

Copyright 2025 Reuters. Click for restrictions.

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Villages Health System Sees $350 Million in Medicare Overcharges
Aon Promotes Reinsurance Leaders as John Neal Takes a New Direction With AIG
PE Firm Warburg Pincus Acquires Majority Stake in Keystone Agency Partners
Louisiana Insurers Must Disclose Prior Policy Premiums Under Controversial New Law

Written By Katanga Johnson

More From Author

Written By Ross Kerber

More From Author

The most important insurance news,
in your inbox every business day.

Get the insurance industry's trusted newsletter

Email This Subscribe to Newsletter
  • Categories: National NewsTopics: environmental social and governance (ESG) criteria, ESG, SEC
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
Cayman Islands Approves 21 New International Insurance Licenses During H1
Former Tennessee Agent Sentenced For Continuing to Sell Insurance Products
People Moves: Aon Appoints Key Leaders in EMEA Commercial Risk Team; AXA XL Promotes Wilkinson to Head of International Casualty, Retail, UK & Lloyd’s
Trump Nominates Two Lawyers to Seal Republican Control of US Labor Board
More News Features

Read This Next

  • SEC to Unveil Rule to Crackdown on Funds ESG 'Greenwashing'
  • Impostor Uses AI to Impersonate Rubio, Contact Foreign and US Officials
  • US Tariffs Projected to Slow Global Economy and Insurance Premium Growth: Swiss Re
  • Texas Officials Under Scrutiny Over Lack of Warning Systems in Deadly Flood
  • Honduran Woman Sentenced for Defrauding NorGUARD of Comp Premiums

Insurance Jobs

  • Director of Property Liability Claims - Wilsonville, Oregon
  • Vice President of Life Operations - Lansing, MI
  • Trial Attorney – Orlando, FL (Remote, Home-based) - Florida, FL
  • Account Executive, BoilerRe - Hartford, CT
  • Cyber Ops Technologist I - Hartford, CT
MyNewMarkets
  • How Embedded Insurance Supports Real Livelihoods in the Growing On-Demand Economy
  • How to Keep Third-Party Events from Becoming First-Party Losses
  • Is It Covered: Auto Coverage Under a CGL Policy
  • When Harassment Follows You Home: Managing EPL Risk in a Remote Work Era
  • Trouble Brewing? 6 New Risks for Winery and Brewery Clients
Claims Journal
  • Los Angeles Sues Airbnb for Alleged Price Gouging Following Wildfires
  • Singapore Says Cyber Espionage Group Targeting Critical Infrastructure
  • UK Court Rules JP Morgan Must Stop Greek Lawsuit Against Viva Directors
  • Tesla Settled Over Autopilot Crash With Truck Crossing Highway
  • Judge Allows US Authors Suing Anthropic to Band Together in Copyright Class Action
Academy of Insurance education
  • July 22 How To Write: Umbrella
  • July 24 Navigating The Impact of Hospital Closures on Workers' Compensation
  • July 31 In The Wake: Personal Lines Issues After a Huge Storm
  • August 7 EPLI Basics

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map