ESG ratings criticised as 'imprecise' by SEC chief

ESG ratings criticised as 'imprecise' by SEC chief

The head of the US Securities and Exchange Commission (SEC) has criticised the industry's reliance on a single rating for ESG funds data, describing this method as 'imprecise.' According to the FT, the SEC is concerned that, with the increasing popularity of sustainable, or ESG, investing, overly simply ratings systems are leading to misinformed or even misguided investment decisions.  Jay Clayton, chairman of the SEC, which acts as the US government's investment regulator, said: "I hav...

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.