"The Securities and Exchange Commission is poised to deliver some tough love to major investment firms: No more flashy green marketing — at least not without proof.
A majority of SEC commissioners voted yesterday to advance two draft rules that are designed to create guidelines for the growing — yet largely unchecked — market of socially conscious investing.
Much of the focus lies with investments known as ESG funds. The acronym stands for environmental, social and governance, and encapsulates a wide variety of investing styles and strategies that purport to consider companies’ performance on a sprawling set of sustainability-related issues.
Once a fringe idea, the universe of ESG investing has ballooned to nearly $2.77 trillion in assets under management globally, according to research firm Morningstar Inc. But the arena remains largely unregulated in the United States.
So the SEC is stepping in."
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