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February 17, 2022
TO: ICI MembersICI Global Members SUBJECTS: ESG RE: ICI Publishes ESG Related FAQs and Disclosure Guide
We are pleased to report the publication of ESG and Funds: Frequently Asked Questions and Understanding Sustainable Funds: A Disclosure Guide.
The Disclosure Guide is a prototype of a summary prospectus, annotated to indicate where sustainability-related information about a fund can be found. It is intended to illustrate how an investor can easily find pertinent information about, among other matters, a fund's principal investment strategies and risks.
We developed the FAQs to educate the public about several topics and address some misconceptions about ESG investing strategies. For example, the FAQs make clear that there is a wide variety of approaches to sustainable investing and that there is no single way (e.g., divesting from a particular sector) to implement a sustainable investing strategy. Other topics include funds' use of ESG ratings firms and proxy voting practices.
Annette Capretta
Associate General Counsel