On March 4, 2021, the SEC announced the creation of a Climate and ESG Task Force in the Division of Enforcement to develop initiatives to proactively identify ESG-related misconduct. The task force's initial focus will be on identifying material gaps or misstatements in climate risk disclosure under existing rules, but it will also analyze disclosure and compliance issues relating to the ESG strategies of investment advisers and funds.

The task force will complement the SEC's other initiatives and efforts related to climate risk and ESG. The announcement comes a week after Acting Chair Allison Herren Lee directed the staff of the Division of Corporation Finance to enhance its focus on climate-related disclosure in public company filings (see Legal Update, SEC's Acting Chair Directs the Division of Corporation Finance to Enhance Review of Climate-Related Disclosure).