Author: James McAllister
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Florida attorney general investigates proxy advisors
Florida Attorney General James Uthmeier (R) announced last week that his office is launching an antitrust investigation into Glass Lewis and Institutional Shareholder Services (ISS), the two largest proxy advisory firms. ISS and Glass Lewis control over 90% of the proxy advisory market and can influence how institutional investors, including pension funds, vote in corporate…
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Hagerty introduces bill prohibiting foreign ESG rule enforcement
Sen. Bill Hagerty (R-Tenn.), a member of the Senate Banking Committee, introduced a bill—the PROTECT USA Act—that he says will protect American companies from the European Union’s (EU) ESG reporting requirements. Republicans and American business organizations have argued the EU’s ESG regulations would hurt and force compliance on U.S. companies. Hagerty’s bill would prohibit foreign…
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State Street removes diversity goals
State Street removed corporate board diversity requirements from its 2025 proxy voting guidelines in a Feb. 28 update. Proxy voting refers to 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. Typically, proxy voting…
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Democratic state financial officers support ESG in letter to regulators
Seventeen Democratic state financial officers sent a letter to the acting heads of the Securities and Exchange Commission (SEC) and the Department of Labor (DOL), asking them to not restrict the use of environmental, social, and governance (ESG) factors in financial decisions. The letter responds to one sent last month by Republican state financial officers…
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Judge issues second decision upholding Biden ESG labor rule
U.S. District Judge Matthew Kacsmaryk upheld the Biden administration’s Labor Department rule allowing the use of ESG investment considerations in ERISA-governed retirement plans for a second time. The decision again rejected the legal challenge from 26 Republican attorneys general. Kacsmaryk’s decision upheld the Biden administration’s Labor Department rule without relying on Chevron deference, which was…
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Oklahoma launches effort to oppose corporate DEI
Oklahoma Treasurer Todd Russ (R) announced plans to oppose corporate diversity, equity, and inclusion (DEI) programs through shareholder proposals using its $2 billion Tobacco Settlement Endowment Trust. DEI is typically associated with the social component of ESG. Treasurer Russ has argued corporations should be politically neutral and avoid using corporate money for DEI and ESG…
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Republican state officials request ESG clarification
Twenty-two Republican state financial officers—treasurers, auditors, and a comptroller—sent a letter Jan. 28 asking the U.S. Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to issue new rules clarifying and updating ESG policies enacted or proposed during the Biden administration. The DOL and the SEC each issued ESG and sustainability investing rules…
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Texas sends letter opposing financial firm DEI policies
Ten states, led by Texas, have requested information from BlackRock, Goldman Sachs, and others regarding their diversity, equity, and inclusion (DEI) policies. The Jan. 23 letter argued business and investment decisions based on race, sex, and other diversity criteria could violate financial firms’ fiduciary duty to focus on maximizing shareholder value. Texas and other states…
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Banks exit net-zero alliance
What’s the story? Three major banks announced over the last several days that they are leaving the Net-Zero Banking Alliance. Morgan Stanley, Citigroup, and Bank of America indicated they would exit the group. Why does it matter? The announcements follow similar actions from Goldman Sachs and Wells Fargo last month. They are part of a…
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BlackRock leaves net-zero alliance, NZAM suspends operations
BlackRock—the world’s largest asset manager—announced Jan. 9 that it is leaving the Net-Zero Asset Managers Initiative (NZAM), a United Nations-affiliated group promoting emission reductions. NZAM announced Jan. 13 that it is suspending operations and removing the commitment statement and list of signatories from its website. The group said in a statement it will reevaluate its…