Although the US Security and Exchange Commission (SEC) disbanded its Environmental Social and Governance (ESG) task force, they are not backing down from enforcement efforts.  In addition, we are getting a better idea of the environmental staff for President-Elect Trump.

US Security and Exchange Commission

Despite disbanding the SEC ESG Task Force, the SEC is not backing down on Greenwashing and ESG disclosures.  As reported by ESG Today, the SEC announced that it has charged global asset manager Invesco for making misleading claims regarding its ESG-related investments, including overstating the proportion of assets under management that integrated ESG considerations.

Invesco has agreed to pay a $17.5 million civil penalty to settle the SEC’s charges, while not admitting or denying the Commission’s allegations.

Separately, on November 4, 2024, the SEC issued a risk alert regarding Registered Investment Companies (aka “funds”).  Among the fund “deficiencies and weaknesses” observed by the SEC staff are funds that “…mischaracterized the use of environmental, social, and governance factors in their investment decision-making processes compared to their actual practices.”  The SEC pointed to sales literature and websites specifically.

How the new administration may affect the SEC’s efforts will play out in the ensuing months.

Despite disbanding the SEC ESG Task Force, the SEC is not backing down on Greenwashing and ESG disclosures (Photo by Patrick Weissenberger on Unsplash).

European Factor

US companies that do business in the European Union (EU) will still have some reporting obligations regardless of how the US approaches environmental/social issues such as ESG, climate issues, and environmental justice.

A recent report states that the climate disclosure rules recently promulgated by the EU will compel more than 3,000 U.S. companies to file mandatory climate-related disclosures.

According to a blog by Mintz, “Most of the U.S. companies impacted by these regulations conduct significant business in the European Union, whether themselves or through an EU subsidiary.  And others that may ultimately need to comply with these regulations conduct a substantial amount of business with EU companies” (See “EU Rules Will Impose Mandatory Climate Disclosures On U.S. Companies).

The Trump Transition

Inside EPA (paywall) has been running several stories and even a special newsletter focused on the incoming Trump Administration.

President-Elect Trump’s EPA is beginning to take shape, with a source close to the team identifying two of its members: Aaron Szabo, a private sector attorney who served in the first Trump administration, and Travis Voyles, Virginia’s Secretary of Natural & Historic Resources who previously served on the Senate environment committee.

Szabo served in the Trump administration as well, as senior counsel for the White House Council on Environmental Quality.  He also worked in the White House Office of Information & Regulatory Affairs from 2014 until 2017 (See Aaron Szabo’s LinkedIn Profile).

Voyles also has significant government experience.  Before serving in the Virginia cabinet, he was oversight counsel for the Senate Environment and Public Works Committee (EPW) from January 2021 until February 2022.  He also previously worked at EPA with stints as acting associate administrator, principal deputy associate administrator, and deputy associate administrator for the Office of Congressional & Intragovernmental Affairs from March 2020 until January 2021 (See Travis Voyle’s LinkedIn Profile).

EJ and RCRA

It is widely believed that EJ, one of the key areas of focus of the Biden Administration (along with climate issues) will be purged from the EPA.  There have also been reports that the 1994 EJ Executive Order by President Clinton may be on the chopping block.

There have been other reports that suggest EPA’s RCRA Office’s budget will face as much as a 30% cut.

While we cannot predict how the next administration will ultimately govern environmental protection, it is not likely to be the chaos envisioned by many.  We will likely see many rules halted and perhaps a return to delegating more environmental protection to the states.  However, looking back to his first term, there were significant enforcement actions.  See two of our previous blogs that we posted during Trump’s first term.

May 16, 2019: CEOs Pay Multi-Million Dollar Fines and Go to Prison for Environmental Violations.

October 23, 2019: Huge CWA Settlement, New Litigation Strategies by Local Governments, and Some Good Energy News.

Perhaps we will see more voluntary self-disclosures, which were up dramatically in Trump’s first term.

Environmental Advice

Dragun Corporation has been assisting the regulated community with environmental compliance, assessment/remediation, and litigation support since 1988.  If you need assistance with an environmental issue, including litigation support, contact Jeffrey Bolin, M.S., CHMM, at 248-932-0228, Ext. 125.

Dragun Corporation does not use artificial intelligence in drafting our blogs or any other material.

Alan Hahn drafted this blog.  Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management.  He has worked in environmental management for 45 years.  He has written hundreds of blogs and articles.  His published work includes Michigan Lawyers Weekly, Detroiter, Michigan Forward, GreenStone Partners, Manure Manager Magazine, Progressive Dairy, and HazMat Magazine.

Jeffrey Bolin, M.S., reviewed this blog.  Jeff is a partner and senior scientist at Dragun Corporation.  He is a published author, frequent speaker, and expert witness.  His expertise in environmental due diligence, PFAS, vapor intrusion, and site assessments has led to projects in the US, Canada, and overseas.  See Jeff’s Bio.  

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