On June 12, 2025, the SEC formally withdrew fourteen outstanding rule proposals, including its 2022 proposed rule on Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices.
The withdrawn ESG proposal would have established a disclosure framework for funds and advisers that consider ESG factors, including categorization of ESG strategies, standardized disclosures in fund prospectuses and adviser brochures, and related reporting requirements.
By withdrawing the proposal, the SEC signaled it will not finalize the ESG disclosure framework as drafted. A future ESG rulemaking, if any, would require a new proposal and comment period.
## What This Means for Firms
Funds and advisers that use ESG terminology remain subject to existing requirements, including the antifraud provisions of the federal securities laws and the Names Rule (Rule 35d-1, as amended in 2023). Materially misleading statements about ESG practices can still draw enforcement scrutiny even without an ESG-specific disclosure rule.