Charleston, WV (WOAY) – West Virginia Attorney General Patrick Morrisey is leading a 21-state coalition filing formal comments referring to the U.S. Securities and Exchange Commission’s (SEC) proposal to add requirements for investment funds considering Environmental, Social, and Governance (ESG) factors in investment decisions. Morrisey argues that the proposed rule “targets fossil fuel companies,” “violates the major questions doctrine, and adds “onerous reporting requirements for investment funds with no rational justification.”
The proposed rule called Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices seeks to categorize specific ESG strategies broadly. In addition, the proposal would require funds and advisers to provide more specific disclosures in the fund prospectus, annual reports, and adviser brochures based on ESG strategies.
Under the proposed rule, SEC would require funds focused on consideration of environmental factors to disclose the greenhouse gas emissions associated with their portfolio investments. Additionally, the commission would require Funds claiming to achieve a specific ESG impact to describe the goals they seek to achieve and summarize their progress in achieving those goals.
Alabama, Alaska, Arizona, Arkansas, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, South Carolina, Texas, Utah, Virginia, and Wyoming joined West Virginia in the letter. To view a copy of the coalitions’ letter, visit