Environmental, social, and governance issues are increasingly material to investors, and the Securities and Exchange Commission (SEC) is checking to ensure businesses’ ESG statements are above board, according to the agency’s enforcement director.

“It is … crucial that when companies speak about the host of issues that may fall under the rubric of ESG, whether climate, social, corporate governance, or others, they do so in a way that’s not materially false or misleading,” said Gurbir Grewal on Friday in remarks delivered at the Ohio State Law Journal Symposium.

Investors care greatly about ESG matters and make investment decisions based on what companies report about meeting their ESG targets, Grewal said.