Cooley’s “Acting Enforcement Director warns of ESG enforcement actions” reports on remarks made by SEC Acting Director of Enforcement Melissa Hodgman on a recent Managed Funds Association webcast that appear to put companies on notice of likely, near-term ESG disclosure-related enforcement activity. In the webcast, Hodgman cited the September 2020 Fiat Chrysler Automobiles Cease-and-Desist Order (release here) to illustrate the types of actions we may see. In that case, the company’s public disclosure about an internal audit of its emissions control systems was allegedly overbroad relative to its limited scope audit and was thus deemed misleading to investors. Cooley notes that the webcast moderator, a former co-Director of Enforcement, also pointed to the Enforcement Division’s new ESG Task Force as an indicator of likely pending investigations and forthcoming enforcement.
See also “New SEC Exam Chief Eyes Asset Managers’ Regard for Climate Risks” (Bloomberg Law).
This post first appeared in the weekly Society Alert!