Tag: ESG initiatives

  • States advance ESG-related bills

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    Four state legislatures took action on six ESG-related bills between June 17-23. Legislation in Ohio and Florida passed both chambers. Legislation in New Hampshire and North Carolina crossed over from one chamber to another. States with legislative activity on ESG last week are highlighted in the map below. Click here to see the details of…

  • House subcommittee addresses proxy advisory firms

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    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…

  • Trump issues executive order opposing state ESG policies

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    Photo of the White House in Washington, D.C.

    President Donald Trump (R) issued an executive order last week directing U.S. Attorney General Pam Bondi to investigate and block enforcement of state laws promoting ESG policies. Trump argued such laws conflict with national security and economic interests. The order lays the groundwork for federal legal challenges against state ESG laws. It reverses the dynamic…

  • SEC ends defense of climate reporting rules

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    The Securities and Exchange Commission (SEC) announced last week that it voted to end its defense of the Biden-era corporate emissions reporting rules. The decision indicates the majority of current SEC commissioners do not support the implementation of the rules. Acting SEC Chair Mark Uyeda said the commission wanted to end its “defense of the…

  • State Street removes diversity goals

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    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…

  • European Commission proposes ESG reporting rollback

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    The European Commission unveiled a proposal to scale back ESG reporting requirements under the Corporate Sustainability Reporting Directive (CSRD). Germany and France urged the Commission to ease CSRD requirements, arguing that they undermine EU companies' competitiveness, especially as the U.S. Securities and Exchange Commission (SEC) has paused its reporting rules. The proposal would exempt up…

  • Democratic state financial officers support ESG in letter to regulators

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    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…

  • Oklahoma launches effort to oppose corporate DEI

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    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…

  • Texas sends letter opposing financial firm DEI policies

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    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…