The U.S. Securities and Exchange Commission (the “SEC”) recently proposed amendments to certain rules and reporting forms under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), which would require registered investment advisers and exempt reporting advisers to disclose additional information regarding how they consider environmental, social and governance (“ESG”) factors in their advisory activities. 
Under Chairman Gensler, the SEC continues to focus on greenwashing and the inconsistency of ESG-related information made available to investors. Commentators have noted there is little uniformity or standardization of ESG-related information that is made available to investors, despite a significant increase in investor demand for ESG strategies. The SEC expressed concern that investment advisers marketing ESG strategies may exaggerate their ESG practices or the extent to which their services take into account ESG factors (a practice referred to as “greenwashing”). The proposed amendments seek to provide more consistent, comparable and reliable information for investors with respect to ESG factors, including by:
The proposed amendments create three categories of ESG-related strategies: (1) ESG Integration, (2) ESG Focused, and (3) ESG Impact:
If enacted as proposed, the amendments would result in the following changes to “check-the-box” style disclosures in Form ADV Part 1A:
If enacted as proposed, the amendments would result in the following changes to Form ADV Part 2A:
These proposed amendments highlight the SEC’s focus on ESG-related issues and emphasize its willingness to increase disclosure requirements with respect to those issues. 
Public comments to the proposed amendments will be accepted for 60 days following publication of the proposing release on the SEC’s website (which occurred on May 25, 2022) or 30 days following publication of the proposing release in the Federal Register, whichever period is longer.
 Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices, Advisers Act Release No. IA-6034, Investment Company Act Release No. IC-34594 (May 25, 2022), available at https://www.sec.gov/rules/proposed/2022/ia-6034.pdf (hereinafter, the “Release”).
 See, e.g., Gary Gensler, Statement on ESG Disclosures Proposal (May 25, 2022), https://www.sec.gov/news/statement/gensler-statement-esg-disclosures-proposal-052522.
 FACT SHEET: ESG Disclosures for Investment Advisers and Investment Companies (May 25, 2022), https://www.sec.gov/files/ia-6034-fact-sheet.pdf.
 See Ryan Russell Kemper and Michele Kloeppel, SEC Emphasizes ESG by Establishing New Website and Taking Public Comments on Climate Disclosure, THOMPSON COBURN LLP (Apr. 5, 2021), https://www.thompsoncoburn.com/insights/publications/item/2021-04-05/sec-emphasizes-esg-by-establishing-new-website-and-taking-public-comments-on-climate-disclosure.
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