The US Securities and Exchange Commission (SEC) has disbanded its Climate and ESG Task Force, part of its Division of Enforcement. First reported by Bloomberg, the decision was attributed to the anti-ESG backlash spurred by the Republican party in recent years, though no confirmation has been provided by the SEC. The taskforce was launched in 2021 and led by Acting Deputy Director of Enforcement Kelly Gibson, with 22 members drawn from the SEC’s headquarters, regional offices, and enforcement-specialised units. It led a number of high-profile enforcement actions, including against BNY Mellon, Goldman Sachs, and Brazilian nickel and iron and ore producer Vale. The taskforce webpage had been inactive since June, prior to a website update that was due to improve compliance, functionality and user experience – which didn’t include the ESG taskforce page. “The strategy has been effective, and the expertise developed by the task force now resides across the division,” an SEC spokesperson told Bloomberg. ESG has been subject to increasing controversy in the US, with several asset managers being targeted by lawsuits, resulting in some leaving climate-focused investor initiatives such as Climate Action 100+. Last year, the SEC had dropped ESG from its 2024 examination priorities list.
