The Securities and Exchange Commission’s Division of Examinations issued a Risk Alert on April 9, 2021 focusing on staff observations from examinations of investment advisers, registered investment companies and private funds engaged in environmental, social, and governance (ESG) investing. This article reviews the Risk Alert, touching on focus areas, observations of deficiencies and internal control weaknesses, and recommended effective practices.
SEC’s Recent Risk Alert Puts ESG Investing in Crosshairs
