The proposed changes would apply to registered investment companies, business development companies (together with registered investment companies, “funds”), registered investment advisers, and certain unregistered advisers (together with registered investment advisers, “advisers”). The rules and form amendments would enhance disclosure by:

● Requiring additional specific disclosure requirements regarding ESG strategies in fund prospectuses, annual reports, and adviser brochures;

● Implementing a layered, tabular disclosure approach for ESG funds to allow investors to compare ESG funds at a glance; and

● Generally requiring certain environmentally focused funds to disclose the greenhouse gas (GHG) emissions associated with their portfolio investments

The proposed rule is important to PRI signatories based in the US, because it standardizes disclosure on ESG strategies and introduces a GHG emissions disclosure requirement. The PRI encourages investors to provide comments on the proposal to the SEC.