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Sustainability Matters

Biden Administration Will Improve Regulatory Climate for Sustainable Investing

Climate risk disclosure and rollbacks of recent rules unfavorable to ESG investing are likely.

Sustainable investing is fast becoming part of the investing mainstream in the United States. Investor interest is high, and sustainable funds have been attracting flows at a record pace. Professional asset managers are increasingly incorporating ESG considerations into their investment decisions. These trends have been occurring without much public policy or regulatory support.

In the final year of the Trump Administration, however, the regulatory environment has shifted from benign to negative as the Department of Labor and the Securities and Exchange Commission have taken decidedly anti-ESG stances in several rule-makings, and the SEC has not addressed requests to require corporate disclosure of climate or other financially material environmental and social risks.

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