Author: James McAllister
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Texas governor considers bill requiring proxy advisor disclosures
The Texas legislature passed a bill on June 2 requiring proxy advisory firms to disclose when their shareholder vote recommendations at Texas-based companies incorporate ESG or other non-financial considerations. If Gov. Greg Abbott (R) signs the bill, it would become the first law of its kind and give Texas companies new legal recourse when proxy…
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Texas comptroller removes BlackRock from boycott list
What’s the story? Texas Comptroller Glenn Hegar announced last week that his office removed BlackRock from the state’s list of firms barred from managing public investment funds over their treatment of fossil fuel companies. Hegar said BlackRock’s recent shift away from public ESG support made the firm eligible to do business with the state again.…
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Labor Department drops defense of ESG rule
The Department of Labor (DOL) filed court documents last week indicating it will stop defending a Biden-era rule allowing ESG considerations in retirement plans. The agency said it plans to propose a new rule to replace it. The rule has faced Republican opposition since 2022 but survived both legal and legislative challenges, including a congressional…
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Federal government weighs in on Texas antitrust suit against Big Three
The U.S. Department of Justice and Federal Trade Commission filed a statement of interest last week in an 11-state, Texas-led lawsuit alleging BlackRock, State Street, and Vanguard colluded to suppress coal production, violating antitrust laws. The statement argued ESG-related coordination among asset managers could raise valid antitrust concerns. Republican-led, energy-producing states like Texas have long…
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Anti-ESG bill dies in Texas House
A Texas bill that sought to shift the legal burden in shareholder lawsuits involving ESG policies failed in committee last week. The House Judiciary and Civil Jurisprudence Committee voted it down 9–1. If enacted, the bill would have been the first to make it easier for shareholders to challenge ESG-related decisions by requiring companies to…
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Supreme Court hears case on nationwide injunctions tied to birthright citizenship order
What happened? The U.S. Supreme Court heard oral arguments May 15 in Trump v. CASA, Inc., a case challenging President Donald Trump’s (R) executive order restricting birthright citizenship. The case was consolidated with Trump v. Washington and Trump v. New Jersey, in which four and 18 states, respectively, filed lawsuits against the administration. The legal…
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ESG critic appointed to Labor Department
The Department of Labor this month appointed Justin Danhof—a critic of ESG investing and a proxy voting and corporate engagement expert—as a senior policy advisor in the Employee Benefits Security Administration. Danhof’s appointment brings an anti-ESG voice into a role that shapes guidance for retirement plans. Danhof previously led the Free Enterprise Project at the…
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House subcommittee addresses proxy advisory firms
The House Financial Services Subcommittee on Capital Markets held a hearing last week on proxy advisory firms, which guide institutional investors on how to vote their shares. Opponents say proxy firms promote ESG priorities in shareholder votes—especially Institutional Shareholder Services (ISS) and Glass Lewis, which control a combined 90% of the proxy advisory market. Critics…
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Fannie Mae closes ESG department
Fannie Mae—the Federal National Mortgage Association, a government-sponsored enterprise (GSE)—shut down its ESG department, firing over 30 employees, including Laurel Davis, head of the company’s mission and impact program. The closure follows similar moves at Freddie Mac and reflects a broader shift away from ESG and DEI initiatives promoted during the Biden administration. Leadership changes…
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Fifteen state AGs ask Business Roundtable to stop DEI
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. The Republican state attorneys general are asking the business group to reverse its perceived support of ESG issues. The group…