WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy, issued the following statement in connection with Better Markets’ new Report, “ESG Investing Persists”:

“Earth Day 2025 is a sad occasion for investors. The SEC, in the last few months, has turned its back on investors by retreating from several initiatives designed to give them information about how companies and funds approach environmental, social, and governance (ESG) factors. It has done so despite the persistence of ESG investing—global sustainable fund assets reached an all-time high of $3.2 trillion at the end of 2024. And it has done so despite evidence that the ESG factors have never been more financially relevant. So as a result of the SEC’s actions, investors will be left without information that they have been demanding and that is crucial to financial performance and therefore to their investment decisions.

“The action that has received the most attention is the SEC’s vote to end its defense of its climate risk disclosure rule, which will leave investors without critical information about the climate-related risks that companies face. But it has taken several other steps that have received less publicity but are just as consequential. From extending the compliance dates for its investment company names rule to prevent greenwashing, to issuing guidance making it harder for institutional investors such as large index funds to engage with companies on critical ESG issues, to making it easier for companies to exclude shareholder proposals relating to ESG concerns from the proxy process through which shareholders attempt to alter how a company operates, the SEC has decided to mirror the political attacks on ESG investing rather than recognizing attacking ESG investing will not make it go away.

“Company leaders, asset managers, and investors all say consistently that the ESG factors impact financial performance. So it’s hard to understand why the SEC would want to prevent investors from getting information about how companies and funds approach the ESG factors. This is especially so given that money continues to flow into ESG funds. The third quarter of 2024 saw global net inflows of $10.4 billion, and in the fourth quarter of 2024 that number rose to $16 billion. ESG investing persists, and the SEC should recognize that fact.”

The Report is available here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.