SEC Warns Of 'Greenwashing' In 2022 Exam Priorities Report

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By Al Barbarino (March 30, 2022, 5:58 PM EDT) — While the U.S. Securities and Exchange Commission’s 2022 examinations priorities remain focused on many of the same issues highlighted in prior years, one term appeared for the first time this year: greenwashing.

The SEC elevated “environmental, social, and governance investing” into its own bullet-pointed “significant focus area” in Tuesday’s report, in which the agency warned that registered investment advisers could be “overstating or misrepresenting” ESG considerations in their portfolios, or “greenwashing.”

Greenwashing refers to conveying a false impression to consumers or investors that a company’s products are more environmentally-friendly or focused than the really are. 

The ESG investing category is listed…

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