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SEC Examiners to Ramp Up ESG Scrutiny for Investment Advisers (2)

March 3, 2021, 3:45 PMUpdated: March 3, 2021, 5:39 PM

The SEC is taking a closer look at how asset managers are using environmental, social, and governance factors in their investment strategies.

Investment advisers can expect the Securities and Exchange Commission to check whether their proxy voting policies and practices align with investors’ best interests and expectations on ESG during the agency’s examinations this year, SEC Acting Chair Allison Lee said Wednesday.

SEC examiners also will review whether investment firms’ business continuity plans account for physical risks associated with climate change, she said.

The inclusion of ESG matters in the Division of Examinations 2021 priorities was the latest move by ...