SEC Climate and ESG Task Force

The Climate and ESG Task Force in the SEC's Division of Enforcement was created to investigate ESG-related misconduct. The Climate and ESG Task Force used data analysis to mine and assess information across registrants, to identify potential violations including material gaps or misstatements in issuers’ disclosure of climate risks.
== History ==
The Climate and ESG Task Force was created by the Securities and Exchange Commission (SEC) on March 4, 2021. Led by Kelly L. Gibson, the acting deputy director of enforcement, the task force had a staff of 22. Gibson's work complemented that of Satyam Khanna, senior policy advisor for climate and ESG. The task force was regarded as the SEC's chief tool for addressing risks to investors related to ESG. It worked closely with other SEC divisions and offices, including the divisions of corporation finance, investment management, and examinations.
== Task Force Focus ==
The initial focus of the task force was to identify material gaps or misstatements in issuers’ disclosure of climate risks. The task force also analyzed compliance issues related to the ESG strategies of investment advisers and funds. The Climate and ESG Task Force also evaluated and pursued tips, referrals, and whistleblower complaints on ESG-related issues. It provided expertise and insight to teams working on ESG-related matters across the division of enforcement. 
== Notable Actions ==
The task force pursued several significant enforcement actions, including a $55.9 million settlement with Vale S.A. for false and misleading disclosures related to the safety of its dams, which caused significant environmental and social harm. Other notable actions included charges against BNY Mellon Investment Adviser, Inc. for material misstatements related to ESG considerations in investment decisions.
== Role of SEC in Climate Policy ==
The U.S. Securities and Exchange Commission (SEC) clarified its stance on climate policy in March 2024, with Chairman Gary Gensler emphasizing that the SEC is not a climate policy agency. Gensler's statement underscored the status of the SEC, saying its primary focus is on investor protection and maintaining fair and efficient markets, rather than setting climate policy. This distinction is important as the SEC has been involved in discussions and rule-making processes related to climate-related disclosures by publicly traded companies. However, Gensler's remarks highlight that the SEC's role is to ensure transparency and accurate information for investors, rather than to dictate broader climate policies.
== Key People ==
* Kelly L. Gibson, Acting Director of Enforcement, Securities & Exchange Commission.
== Disbandment ==
The SEC quietly disbanded the Climate and ESG Task Force over some months and the dissolution was known by September 13, 2024. Despite its dissolution, the responsibilities and expertise of the task force are expected to be dispersed throughout the agency, and the SEC remains focused on ESG-related topics.
==Ongoing ESG Focus==
Companies are still required to ensure the accuracy and consistency of their ESG-related disclosures. The SEC continues to scrutinize ESG-related disclosures, including those in sustainability reports and other climate-related analyses. The agency remains committed to holding violators accountable for any material misstatements or omissions in their disclosures.
== References ==
Category:Regulatory Bodies
Category:Environmental, Social, and Governance
Category:Securities and Exchange Commission
Category:Financial Regulation
Category:Corporate Governance
[Category: Climate Change]]
Category:Corporate Disclosures