SEC Wants to Shed Light on Funds’ ESG Claims With New Disclosure

Mutual fund giants like BlackRock and Vanguard are facing a new SEC proposal that would trigger greater investor scrutiny about how their proxy ballot votes correspond to their environmental, social, and governance claims.

The Securities and Exchange Commission this week proposed rules that would require funds to more clearly disclose their votes on shareholder and management proposals—on a wide range of ESG topics from greenhouse gas emissions to board diversity—through categories that are set and standardized by the SEC.

BlackRock Inc., Vanguard Group Inc., and other firms that offer mutual funds to investors already must release their proxy voting ...