The environment is a social issue growing in popularity. Decades ago, not many people cared too much about the environment, but nowadays it is recognized as more important. This has come with the advent of social media and its ability to spread information rapidly and organize people with ideas. Products and services have even found a market for higher prices but more environmentally friendly goods. Beyond the private sector, the government has also made moves both domestically and internationally. From the Paris Climate Accords to restriction on the private sectors emissions. Despite this, investors themselves have only recently been heavily focused on environmental investing. From ESG ratings to green ETFs or Eco-Hedge Funds, the trend is only growing.
The newest feature of this trend in investing involves the SEC. The Securities and Exchange Commission wants to know a lot more about what companies are doing about climate change. Specifically, the SEC Commissioner has said that the SEC will be creating rules to enhance disclosures regarding climate-related risks. Indeed over 50 proposed rules are under consideration by the SEC. The dishing out of these rules is seen to be controversial as they are not only currently ambiguous, but some have found it to be a regulatory overreach. What do you think about the SECs new rules? And do you support them?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.