SEC Chairman discusses ESG and other current issues....

SEC Chairman Jay Clayton recently appeared on CNBC and covered a range of issues, including ESG (as well as SPACs, 13F, and China). He noted that the issues of how to describe and score ESG ratings are very subjective matters. One needs to agree what E, S and G actually mean, and then address how to weigh each of those categories, all with an eye on making the resulting information valuable to an investment decision. Even though the SEC does not want to promulgate a uniform approach to ESG, these are the very issues that a growing number of market participants and regulators around world are considering. One important takeaway on this issue was a clear reminder that funds marketing E, S or G investments must make sure the investment approach matches the marketing, or as Chairman Clayton explained: "Make sure that the marketing and the substance line up." If this is relevant to you, take the time now to answer this question for your organization, before the SEC comes knocking.