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GOP Threatens SEC Oversight of ESG Cases

The House Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets held a hearing this week on “Oversight of the SEC’s Division of Enforcement” in which Republican lawmakers grilled SEC Director of Enforcement Gurbir Grewal on the agency’s enforcement of ESG-related issues as well as its proposed ESG rules.

According to an Investment News report of the hearing, Representative Ann Wagner (R-Mo) noted that ““You can’t enforce something that’s not defined” and criticized new rules mandating more ESG disclosure for companies, funds and advisers, stating she was “highly disappointed in the lack of answers and transparency today.” Meanwhile, Democratic Subcommittee members praised the SEC for pursuing ESG cases, especially related to allegations of fraudulent disclosures. 

The hearing was indicative of challenges to come, as a Republican Congress will likely pursue a variety of tactics to slow the SEC’s onslaught of ESG-related initiatives such as limiting funding and preventing SEC officials from working on rules by requiring them to appear in hearings.

Published on: July 22, 2022

Authors: Ani Huang

Topics: ESG and Diversity & Inclusion

Ani Huang

President and CEO, Center On Executive Compensation

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Contact Ani Huang LinkedIn

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