The SEC has quietly disbanded its Climate and ESG Task Force, a group of enforcement lawyers formed in March 2021 to address misleading environmental, social, and governance (ESG) disclosures. The group, created under Acting SEC Chair Allison Lee and continued by current Chair Gary Gensler, was involved in cases against companies such as Bank of New York Mellon, Goldman Sachs, and Vale SA.
An SEC spokesperson stated that the expertise developed by the task force now resides across the division, suggesting that the work will continue without a dedicated team. This change reflects a broader trend within the SEC and corporate America, where the term “ESG” is being avoided due to a growing conservative backlash. The SEC has even removed ESG from its examiners’ priority list and may not finalize major ESG regulations before a possible change in leadership by January 2025.
The last known case connected to the task force was a $25 million settlement with Deutsche Bank AG in September 2023 for misleading ESG investment claims. However, by June 2023, the SEC had removed its dedicated web page promoting the task force’s work, signaling the quiet end of the initiative.
Source: Bloomberg Law
