In this week’s edition of Economy and Society:
- SEC approves new stock exchange with environmental standards
- Indian market regulator considers rollback of ESG disclosure rules
- Fifteen state AGs ask Business Roundtable to stop DEI
- ESG legislation update: Ballotpedia launches ESG legislation tracker
- Net-Zero Banking Alliance will drop its climate goal
- World Economic Forum chairman and founder retires
In Washington, D.C., and around the world
SEC approves new stock exchange with environmental standards
What’s the story?
The Securities and Exchange Commission (SEC) approved the nation’s first environmentally focused stock exchange, the Global Impact Exchange (GIX), on Apr. 11. The exchange is expected to begin trading in 2026.
Why does it matter?
Publicly traded companies that meet the GIX’s environmental standards will be eligible to list on the exchange in 2026. GIX is the second new stock exchange approved by the SEC this year.
Read more
According to ESG Dive:
GIX said its exchange seeks to serve both sustainability-minded investors and companies focused on managing climate-related risks. The company focused on creating a sustainability-focused exchange due to their regulated nature, and investors will be able to rely that if a company is dual-listed on GIX, it has adopted the exchange’s principles, according to the company’s webpage.
The SEC said in its April 11 approval that it found the sustainability exchange’s proposed rules consistent with governing laws and that they “do not impose any burden on competition not necessary or appropriate.”…
The exchange focuses on company leadership, stakeholders, goals, strategy, reporting and alignment with respect to sustainability, according to a FAQs page. GIX said companies and their boards should have public commitments to long-term sustainability and accountability mechanisms; the companies should have short-, medium- and long-term goals that “will lead to operating its business sustainably;” adopt a strategy to achieve sustainability goals and a commonly accepted reporting framework; and align sustainability commitments with the business operations.
Indian market regulator considers rollback of ESG disclosure rules
What’s the story?
The Securities Exchange Board of India (SEBI), the country’s market regulator, is reportedly considering rolling back ESG disclosure rules as of April 2025. The proposal includes supply chain disclosures and exempts smaller businesses from the rules altogether.
Why does it matter?
SEBI’s potential rollback reflects a broader trend toward loosening ESG regulations. In the United States and Europe, efforts to scale back ESG rules have been ongoing for several months.
What’s the background?
For more on the SEC’s termination of its defense of the climate disclosure rule, see here.
Read more
According to Reuters:
India’s market regulator is rethinking sustainability or ESG disclosures required of listed firms including its already delayed plans for companies to include supply chains in their reporting, its new chief Tuhin Kanta Pandey told Reuters.
The review, which follows concerns raised by Indian industry on reporting requirements on environment, labour and other issues that it believes are onerous, could focus on easing disclosures for smaller firms, a source familiar with the regulator’s thinking said. …
SEBI’s review of its mandated disclosures has not been previously reported. Pandey, who took over as SEBI chairman in March, did not say whether the final rules would be less demanding or what form they would take.
In the states
Fifteen state AGs ask Business Roundtable to stop DEI
What’s the story?
Fifteen state attorneys general sent a letter to Business Roundtable, an organization of chief executive officers (CEOs), urging the organization and its member companies to withdraw their support for Diversity, Equity, and Inclusion (DEI) initiatives.
Why does it matter?
The Republican state attorneys general are pressuring the business group to reverse its perceived support of ESG issues. The group issued a statement in 2019 redefining the purpose of a corporation to make businesses more focused on stakeholders, not just shareholders.
Read more
According to Just the News:
“As Attorney General, I will ensure that corporate policies are focused on our state’s success and not ideological distractions,” Bailey said in a statement. “The Business Roundtable has decided that racist DEI initiatives are more important than free market. I am fighting to protect working Americans and investors from these woke political trends and blatant racial discrimination.”
“We write to urge the Business Roundtable’s member CEOs to abandon the unlawful and misguided DEI initiatives that have for too long harmed businesses and consumers alike,” the group wrote to the organization. …
The AGs concluded by urging the Roundtable to “rededicate itself to merit-based hiring, which supports the actual purpose of a corporation and complies with employment laws.”
ESG legislation update: Ballotpedia launches ESG legislation tracker
As part of Ballotpedia’s commitment to providing comprehensive, up-to-date political information beyond election coverage, today, we’re announcing the launch of our new ESG Legislation tracker.
States have enacted 15 bills on environmental, social, and governance (ESG) investing so far this year. States approved 34 such laws in 2024, 45 in 2023, 17 in 2022, 13 in 2021, and three in 2020.
Four states with Republican trifectas and Kentucky (a divided government) enacted 13 bills opposing ESG investing, while two states with Democratic trifectas enacted two bills requiring ESG for state contracts.
Eight state legislatures took action on 15 ESG-related bills last week (since April 15). Two bills in Arkansas were approved by both chambers. Five bills have crossed over to the second chamber. States with legislative activity on ESG last week are highlighted in the map below. Click here to see the details of each bill in the legislation tracker.
On Wall Street and in the private sector
Net-Zero Banking Alliance drops its climate goal
What’s the story?
The Net-Zero Banking Alliance (NZBA) removed its mandatory requirement that members align their lending and investments with the Paris Agreement’s climate goal of no more than 1.5 degrees of warming this century.
Why does it matter?
NZBA saw the departure of all large American banks in early 2025, as well as those from other countries around the world. The decision to drop the climate goal is part of the organization’s effort to align with the Republican administration now in office.
What’s the background?
For more on NZBA’s struggles and reform efforts, see here.
Read more
According to ESG Today:
After rapidly expanding from 43 banks at launch in 2021 to over 140 banks representing $74 trillion in 2024, members of the group have come under significant pressure, particularly from Republican politicians in the U.S., who have been warning financial institutions including banks, insurers, asset owners and investors of potential legal violations from their participation in climate-focused alliances and of plans to exclude the companies from state business, as part of a broader anti-ESG political campaign. Following the departure of several high-profile banks, the alliance currently stands at 128 banks, representing $47 trillion of assets.
Alongside the announcement, the NZBA released revised guidelines for members, significantly softening the language from its 2024 guidelines which had included a series of mandatory requirements for banks. Among the most notable changes, the 2024 guideline stated that “banks shall set a 2050 target to support meeting a 1.5°C by end of century outcome and a net-zero by 2050 goal,” with an explanation that this was “mandatory, on a comply-or-explain basis,” while the updated document includes a “recommendation” that states that “banks should set a 2050 target to support meeting a net-zero goal and the goals of the Paris Agreement.” (emphasis added by ESG Today).
The NZBA noted that the changes were made in response to a “new reality” in which “the external landscape for banks has rapidly changed,” with the organization’s next phase aimed at “supporting member banks to progress against their individual climate-related strategies,” and helping banks to “address constraints on green growth by working with their clients to advance policies that stimulate markets and unlock opportunities for investment.”
In the spotlight
World Economic Forum chairman and founder retires
What’s the story?
Klaus Schwab, founder of the World Economic Forum (WEF), announced on Apr. 21 that he is retiring from his position as chairman of the organization’s board of trustees.
Why does it matter?
Schwab, who retired from his position as the WEF’s executive director in 2024, has been a prominent advocate of stakeholder capitalism. He founded the WEF and its annual Davos meeting. He also authored the 1973 Davos Manifesto and the updated “Davos Manifesto 2020: The Universal Purpose of a Company in the Fourth Industrial Revolution.”
Read more
According to a WEF press release:
Klaus Schwab, Chairman of the Board of Trustees of the World Economic Forum, has informed the Board. …
At an extraordinary Board meeting on 20 April, the Board of Trustees took note of the resignation of Klaus Schwab. In accordance with the Forum’s Rules and Regulations, the Board unanimously appointed Vice Chairman Peter Brabeck-Letmathe as Chairman ad interim. It also established a Search Committee for the selection of a future Chair.
The Board acknowledged the outstanding achievements of the retired Chairman and Founder of the World Economic Forum, Klaus Schwab. He created the leading global platform for dialogue and progress, and the Board expressed its gratitude for his 55 years of relentless leadership at the helm of the Forum.