• SEC Action: Invesco Advisers, Inc. faced a $17.5 million civil penalty after being charged by the SEC for making misleading ESG-related statements to clients.
• Misrepresentation Details: From 2020 to 2022, Invesco falsely claimed that 70-94% of its assets under management were “ESG integrated,” including passive ETFs that did not apply ESG considerations.
• Regulatory Outcome: Invesco, without admitting or denying the SEC’s findings, agreed to pay the penalty, cease violations, and comply with a censure.

The Securities and Exchange Commission (SEC) charged Atlanta-based investment adviser Invesco Advisers, Inc. with making false statements regarding the integration of ESG factors in their asset management. From 2020 to 2022, Invesco claimed that 70-94% of its assets were ESG integrated, while including passive ETFs that did not consider ESG factors. The SEC also found that Invesco had no formal policy defining ESG integration.

Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, remarked,

“As stated in the order, Invesco saw commercial value in claiming that a high percentage of company-wide assets were ESG integrated. But saying it doesn’t make it so. Companies should be straightforward with their clients and investors rather than seeking to capitalize on investing trends and buzzwords.”

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Invesco agreed to pay the $17.5 million fine, be censured, and cease violations without admitting or denying the findings. The investigation involved members from various SEC offices, including Jonathan T. Menitove and Richard Rodriguez, with supervisory oversight by Ruth Hawley and others.

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