Following on the heels of other recent rule proposals, the SEC’s newly proposed rules (Proposal) on environmental, social and governance (ESG) disclosures were met with something of a sigh of relief. Whereas the other proposals would dramatically upend fund manager practices and potential cripple industries, the requirements in the Proposal were far less invasive. That said, fund managers will need to dedicate meaningful time and attention to ESG disclosures in their respective Forms ADV if the Proposal is eventually adopted. This second article in a two-part series forecasts how the private funds industry will approach the process of complying with the Proposal, offers tips on how fund managers can prepare to adopt the requirements and estimates the likelihood of the Proposal’s adoption. The first article identified various concerns and potential problems associated with the three SEC-defined ESG strategies, as well as issues fund managers may face when complying with the other Form ADV disclosure requirements in the Proposal. See our two-part series on the SEC’s proposed climate risk disclosure rules: “Five Key Elements” (Jul. 19, 2022); and “Implications, Challenges, Timing and Pushback” (Jul. 26, 2022).