ESG Disclosures for Investment Advisers

Throughout the world, investors and businesses alike are voicing growing concerns over social issues such as diversity and climate change in the workplace culture. Despite that Wall Street firms are chiefly concerned with profits, many of their top executives understand that environmental, social and governance (“ESG”) issues present real financial risks. As a result, many public corporations are now focused on ESG issues. 

Investor demand for investment products and financial services that incorporate ESG factors has steadily increased in recent years. In response, many investment advisers have begun to offer ESG investment options, including registered investment companies and pooled investment vehicles, e.g., private funds (collectively, “funds”), and separately managed accounts.  The SEC has shown a particular interest in the accuracy and adequacy of disclosures provided by registered investment advisers offering clients new types of emerging investment strategies, such as strategies focused on sustainable and responsible investing, which incorporate [ESG] criteria. 

Compliance Advisers can assist investment advisers who are offering these new types of ESG investment strategies to prepare proper, accurate disclosures for their clients. Call us today at (303) 795-0400 or email us at to request a preliminary consultation regarding ESG Investing Disclosures.