In this week’s edition of Economy and Society:
- EPA proposes ending emissions reporting
- SEC chair criticizes EU ESG rules
- U.S. ambassador to EU speaks against ESG rules
- BlackRock support for E&S proposals falls below 2%
- Vanguard says younger investors favor ESG proxy policies
In Washington, D.C., and around the world
EPA proposes ending emissions reporting
What’s the story?
On Sept. 13, the Environmental Protection Agency (EPA) published a proposed rule that would eliminate the Greenhouse Gas Reporting Program (GHGRP), which requires fossil fuel producers to disclose carbon emissions. Administrator Lee Zeldin said the reporting program goes beyond what the Clean Air Act requires.
Why does it matter?
Administrator Zeldin says the change could save businesses an estimated $2.4 billion annually and will not harm air quality. Former Biden administration EPA official Joseph Goffman said the move “blinds Americans to the facts about climate pollution. Without it, policymakers, businesses and communities cannot make sound decisions about how to cut emissions and protect public health.”
What’s the background?
The EPA launched the GHGRP during the Obama administration in 2009 to collect annual emissions data from large emitters. The EPA created the program under its Clean Air Act authority, which directs the agency to regulate air pollution.
The proposed rule comes as other federal climate disclosure rules face uncertainty. Business groups and Republican attorneys general are challenging Securities and Exchange Commission (SEC) rules adopted in 2024 during the Biden administration that require public companies to disclose climate risks. In July 2025, the SEC told the Eighth Circuit it would not defend the rules and did not say whether it would enforce them if upheld.
SEC chair criticizes EU ESG rules
What’s the story?
During an address to the Organisation for Economic Co-operation and Development (OECD) Capital Markets Roundtable in Paris, SEC Chair Paul Atkins said the European Union’s climate and ESG disclosure requirements impose undue costs on U.S. companies and asked OECD nations to focus on financial considerations rather than ESG factors.
Why does it matter?
Atkins’ speech adds to a growing Trump administration push against EU climate and ESG rules, following similar comments from Labor Department senior adviser Justin Danhof at OECD last week. The U.S. and EU announced a trade agreement last month in which the EU promised its ESG measures would “not pose undue restrictions on transatlantic trade.” The U.S. Senate also confirmed Andrew Puzder, a vocal ESG critic, in August as U.S. ambassador to the EU. (See the next story for more on Puzder).
What’s the background?
The EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) require large companies, including U.S. multinationals with major EU operations, to disclose climate risks and conduct supply-chain due diligence.
The OECD is made up of 38 countries with advanced economies that coordinate policy on trade, markets, and regulation. Its roundtables serve as platforms for governments and regulators to debate international standards.
U.S. ambassador to EU speaks against ESG rules
What’s the story?
U.S. Ambassador to the EU Andy Puzder told Bloomberg News that the Trump administration will defend American companies from EU regulations it considers unfair. Puzder said the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) are examples of rules that hurt American companies.
Why does it matter?
Puzder’s comments show the Trump administration’s opposition to EU ESG rules extends into U.S. diplomacy. Unlike SEC Chair Paul Atkins, who raised concerns in a regulatory forum, Puzder speaks as the U.S. ambassador in Brussels, adding diplomatic weight to the administration’s opposition.
What’s the background?
Puzder, the former CEO of CKE Restaurants, was a prominent ESG critic before his appointment. He authored A Tyranny for the Good of Its Victims earlier this year and has framed ESG as a threat to economic freedom.
On Wall Street and in the private sector
BlackRock support for E&S proposals falls below 2%
What’s the story?
BlackRock reported that its support for environmental and social (E&S) shareholder proposals dropped below 2% in the 2025 proxy season, marking the fourth straight year of decline. The firm’s support for such proposals peaked at more than 40% in 2021.
Why does it matter?
BlackRock is the world’s largest asset manager, with more than $12 trillion in assets under management. Its retreat from climate and social proposals mirrors Vanguard’s, which opposed all 261 E&S proposals at companies in its portfolios in 2025. To learn more about Vanguard’s votes, click here.
BlackRock said it encountered fewer E&S proposals overall and argued most “were overreaching, lacked economic merit or sought outcomes that were unlikely to promote long-term financial value.”
What’s the background?
Support for environmental and social proposals has fallen for four consecutive proxy seasons. The Conference Board reported that shareholder submissions at Russell 3000 companies dropped from 932 in 2024 to 781 in 2025. Ernst & Young said S&P 1500 companies voted on 149 E&S proposals this year, a 45% year-over-year decrease, with average support falling to 14% from a 2021 peak of 33.3%.
Proxy voting is the process through which shareholders who do not physically attend corporate shareholder meetings vote on company issues such as executive pay packages, board membership, and other shareholder and management proposals.
Vanguard says younger investors favor ESG proxy policies
What’s the story?
On Sept. 10, Vanguard released results from its Investor Choice proxy voting pilot. The data showed that 18% of participants selected the Glass Lewis ESG voting policy, with strongest support among younger investors (42% of those under 45) and women (28%). By contrast, 17% of investors over 45 and 16% of men chose the ESG option.
Why does it matter?
Vanguard is the world’s second-largest asset manager and the largest passive manager. The single largest share of participants in the proxy voting pilot—about 35%—still chose the Vanguard-advised default policy, which did not support any environmental or social proposals in the 2025 proxy season, as reported last week.
What’s the background?
Vanguard launched Investor Choice in 2023 to let eligible fund holders direct their shareholder votes through preset proxy guidelines. Participation more than doubled this year to more than 82,000 investors, spanning 12 index funds with more than $1 trillion in assets. Nearly two-thirds of participants selected something other than the Vanguard-advised default. Alongside the 18% who picked the ESG option, other policies drew comparable support—for example, men were nearly twice as likely as women to select the Egan-Jones Wealth-Focused policy (26% vs. 14%), which emphasizes financial returns. Vanguard says it plans to continue expanding the program in future proxy seasons.