On May 25, 2022, the Securities and Exchange Commission (the “SEC”) voted 3 to 1 (Commissioner Peirce dissenting) to propose enhanced disclosure requirements regarding the environmental, social and governance (“ESG”) practices of registered investment advisers, certain advisers that are exempt from registration, registered investment companies and business development companies. The proposal states that the proposed rule and form amendments are “designed to create a consistent, comparable, and decision-useful regulatory framework … to inform and protect investors.” While the proposal’s prescriptive approach of mandating specific disclosures for funds and advisers for a particular investment strategy diverges from the SEC’s historical principles and materiality-based reporting framework, the approach is consistent with the SEC’s recent proposal on climate-related disclosures for public companies.