Bloomberg reports that:
The SEC is taking a closer look at how asset managers are using environmental, social, and governance factors in their investment strategies.
Investment advisers can expect the Securities and Exchange Commission to check whether their proxy voting policies and practices align with investors’ best interests and expectations on ESG during the agency’s examinations this year, SEC Acting Chair Allison Lee said Wednesday.
The assumption seems to be that all investors share the same views about climate change and expectations. Or, perhaps, that only woke investors "interests and expectations" matter because those are the "best interests and expectations."
I imagine, for example, a retired Republican investor with no kids who is not sure climate change is all that big a problem. She wants to maximize short term returns. Is the SEC basically going to say that her investment goals don't matter?
How about a 30 year libertarian techie who thinks climate change is a big deal, but who believes that society will focus on technological solutions involving carbon capture rather than reducing carbon output. Will the SEC allow her to assemble a portfolio of companies that are high carbon output firms?
