· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on ESG Dive or see below:
🗞️ Driving the news: The U.S. House Financial Services Committee, led by Republican Chair French Hill, has formally requested the Securities and Exchange Commission (SEC) to withdraw a series of Biden-era rules, including its proposed ESG disclosure framework aimed at curbing greenwashing in financial markets
• The call to rescind also includes cybersecurity, executive compensation, and investment fund naming rules
🔭 The context: The SEC's ESG disclosure rule, first proposed in 2022, was designed to improve transparency and protect investors by ensuring that ESG-labelled investment products reflect meaningful and measurable sustainability criteria
• Though the rule gained support from Democratic lawmakers, it stalled amid leadership transitions and has not progressed since October 2024
• With Republicans now holding key government branches, regulatory rollback efforts are accelerating
🌍 Why it matters for the planet: If rescinded, the rule’s withdrawal could weaken safeguards against greenwashing, reduce market transparency on ESG practices, and erode investor confidence in sustainable finance products
• It also reflects a broader political shift that may hinder the integration of climate and social risk considerations into U.S. capital markets at a time when other jurisdictions, like the EU, are advancing ESG disclosure mandates
⏭️ What's next: With Acting SEC Chair Mark Uyeda and a Trump-aligned administration in place, finalization of the ESG rule is increasingly unlikely
• Paul Atkins, Trump’s nominee to lead the SEC, is expected to steer the agency away from climate and ESG priorities
• Parallel efforts are underway to dismantle climate risk guidance at other financial regulators, including the OCC, which rescinded its climate framework on March 31
• Further deregulatory moves are expected in the coming months
💬 One quote: “The Financial Services Committee is prepared to work alongside the SEC to undo the damage from former Chairman Gary Gensler’s tenure,” — House Republicans, in a March 31 letter
📈 One stat: The SEC’s climate and ESG disclosure rules were initially scheduled for finalization in April and October 2024, respectively—neither met its deadline and both face indefinite delay
See here detailed sustainability performance of companies like BlackRock, Vanguard, and State Street
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