The Impact of ESG Considerations

The Securities and Exchange Commission (SEC) typically experiences a change of top leadership under a new administration, and accompanying the incoming leadership is a regulatory approach that potentially diverges from the approach taken by the previous administration.  Thanks to extensive discretionary enforcement authority that the SEC wields in regards to companies and financial markets, a new approach may have a significant impact on the value of equity shares and other financial assets.  For instance, as this article notes, the new SEC leadership may take a vastly different approach to shareholder resolutions on environmental, social, and governance issues.  This could have  far-reaching effects, both positive and negative from a financial perspective, on many companies in various industries.  Investors would benefit from being aware of these potential effects and investing accordingly.

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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management