At a recent “meeting” of the Asset Management Advisory Committee,  Jay Clayton, chairman of the Securities and Exchange Commission, noted:

“I have not seen circumstances where combining an analysis of E, S and G together, across a broad range of companies, for example with a ‘rating’ or ‘score’, particularly a single rating or score, would facilitate meaningful investment analysis that was not significantly over-inclusive and imprecise,” said Mr Clayton.

The SEC has asked for feedback from asset managers about ESG ratings as concerns rise about the spread of so-called greenwashing by companies that make misleading claims about their environmental credentials to appeal to unsuspecting investors.

And an interesting piece on a related topic by a strategist at one of our holdings – INTL FCSTONE.