SEC CLIMATE RULE & GREENWASHING: KEY POINTS

??. ???????? ???????????? ???????????????????? ??????'?? ?????????????? ????????????????????????

The SEC Rule provides "safe harbor" provisions for "??????????????-?????????????? ?????????????????????? ???????????????????? ???? ???????????????????? ??????????, ???????????????? ????????????????, ????? ?????? ???? ???? ???????????????? ???????????? ??????????, ?????? ?????????????? ?????? ??????????…" (p. 35) and the SEC believes this “???????? ??????? ?????????????????????? ???????? ????????????????????????? ?????????????????????? ???? ????????? ?????????????? ???? ????? ?????????????? ???? ??????????????????." (p. 398). However, in this context, the term "fraudulent statement" means "?? ?????????????????? ??????? ???? ???? ???????????? ?????????????????? ???? ???????????????? ????????, ?? ?????????????????? ?????????? ???? ???????????????????? ???????? ?????????????? ???? ?????? ???????????????? ????????, ???? ???????????????? ???? ?????????? ?? ???????????????? ???????? ?????????????????? ???? ???????? ?? ?????????????????? ?????? ????????????????????, ???? ???????? ?????????????????????? ?????? ???????????????????? ???? ?? ????????????????????????, ??????????????????, ???? ???????????????????? ????????????,?contrivance, scheme, transaction, act, practice, course of business…” (p.388)

??. ???????? ???????????? ???????????????????? ??????'?? ?????????????? ?????????? ?? & ?? ??????????????????

"?????????????? ???????? ???????????????????? ?????????? ????? ???????????????????? ???? ?????????????? ???????????? 1 ?????? 2 ?????????????????? ?????????????????????? ??????????? ????? ?????????? ???? ?????? ???????? ???????????, ???? ?????????????? ???? ???????????? ??????? ????????????????????????????. ?????????????? the methodologies underlying the calculation of those scopes are fairly well established, we do not believe that it is necessary to provide a safe harbor from private litigation for such disclosures." (p. 401)

3. ???????????????????????? ???? ?????? ??????????????

Recognizing that there is no universally accepted definition of "greenwashing", the Commission specifically stated that it "?????? ?????? ???????????? ???????????????????????? ???? ?????? ?????????????????? ?????????????? ?????? ???? ?????? ???????????????? ???? ??????." (p. 39; footnote 104) That said, it highlighted a generally accepted definition to mean the set of activities conducted by firms or funds to falsely convey to investors that their investment products or practices are aligned with environmental or other ESG principles (see Proposing Release, section IV.C.1. See also OICU-IOSCO Supervisory Practices to Address Greenwashing, (Dec 2023), available at https://www.iosco.org/library/pubdocs/pdf/IOSCOPD750.pdf" (footnote page 39)).?Without the SEC's Climate and ESG Task Force within the Division of Enforcement, the SEC expects the risk of greenwashing “???? ???? ?????????????? ?????????? ??????? ????????? ?????????????????????? ???????? ?????????????? ???????????????????????? ?????? ?????????????????????? ?????????????????????? ???? ???????????????????????? ??????? ?????? ?????????? ??????? ????? ???????????????????? ?????? ?????? ?????????????? ???? ????? ???????????????????? ?????????????????? ???????????????????? ?????????? ????? ???????????????????? ?????? ?????? ??????????????? ??????". (p. 665). "???? ????????????????, ?????????????????? ???????????????????? ???? ?????????? 1 ?????? ?????????? 2 ?????????????????? ???????? ???? ???????????????????? ?????????????? ?????? ?????????? ?????????????????? ???????????????????????? ???????? ?????????? ?????????? ???????? ?????????????????? ??????????????????????." (p. 682)

4. ?????????????????????? ?????? "??????????" ???????????? ???????? "??????????????????" ?????? ?? ????????????

“???????????????? ??????????????-?????????????? ?????????????????????? ???? ?????????? ???????? ??????? ?????????????? ????? ???????????????? ?????? ?????????????????????? ???? ??????? ??????????????????????. ???? ??????? ????????????, ???? ?????????????? ??????????????-?????????????? ?????????????????????? ???????????? ???? ?????????????? ???? ?????? ???????? ?????????????????? ???? ????????? ?????????????????? ???????????????? ???? ?????????????????? ?????????????????????? ??????? ????? ???????????????????? ???????????????? ???? ?????? ???????????????????????? ???????????????????? ?????? ???????????????? ??????????????." (p. 584)

"?????????????????? ????????? ?????????????????????? ???? ???????????????????? ?????????????? ???????? ???????? ?????????????? ??????? ???? ???????????????? ?????????????????? ???????? ???????????????? ?????????????????? ???????????????? ?????????????????????? ???? ?????????????????? ????? ?????????????????????? ???? ??????????????????????." (p. 13)

5. ?????????? ?????????????????? ??????????????

Although the final Rule eliminated the proposed requirement to describe board members' climate expertise, it does require a description of "???????????? ?????? ???????? ???????????????????? ?????????????????? ???? ???????????????????? ?????? ?????????????????????? ?????? ?????????????????? ?????? ???????????????? ??????????????-?????????????? ??????????, ?????? ????? ???????????????? ?????????????????? ???? ??????? ???????????????? ????????????? ???? ?????????????????? ?????????????? ???? ??????? ???????????? ???? ?????????????????? ???? ?????????? ???????????????? ????? ???????????? ???? ????? ??????????????????." (p. 179)

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Note: unless otherwise indicated, quotes and page references above are from the SEC's Final Rule: https://www.sec.gov/files/rules/final/2024/33-11275.pdf