As scrutiny picks up, major financial firms are adjusting their businesses to ensure that clients get more say over environmental, social and governance matters.
In one proposed change, the SEC would expand an existing rule to ensure funds labeled ESG invest at least 80% of their assets in a way that lines up with that strategy.
The charges come as investment advisors increasingly use ESG metrics to appeal to investors, according to SEC Enforcement Division Deputy Director Sanjay Wadhwa.