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SEC Chief Takes to Twitter to Issue New Warning on Greenwashing

March 1, 2022, 5:17 PM

U.S. Securities and Exchange Commission Chair Gary Gensler is making it clear he’s skeptical the hundreds of investment funds that tout ESG credentials are as green or socially conscious as advertised.

On Tuesday, The Wall Street regulator posted a video on Twitter that highlights some of his top concerns. Gensler pointed out that there’s no industry consensus on what environmental, social and governance investing means. He questioned whether firms are adhering to a 1940 law that requires fund names to match what they invest in. And he noted that unlike many high-yield bond funds, ESG offerings don’t publish debt ratings ...