Tag: ESG investing
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SEC ends defense of climate reporting rules
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…
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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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European Commission proposes ESG reporting rollback
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…
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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…
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Indiana pension board removes assets from BlackRock’s management
The Indiana Public Retirement System’s trustees voted last week to stop using BlackRock for asset management services. The board is considering three firms as replacements: State Street, UBS, and Northern Trust. Indiana Treasurer Daniel Elliott (R) argued in August that BlackRock’s ESG commitments made the firm ineligible for contracts under the state’s 2023 anti-ESG law.…
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Eleven states sue asset managers, alleging antitrust violations
Eleven Republican-led states on Nov. 27 sued BlackRock, Vanguard, and State Street—the Big Three passive asset managers—arguing the firms violated antitrust laws. The states said the firms’ collective ESG engagement hurt coal production, raising consumer energy costs. The firms argued they operate independently and compete with one another. BlackRock, Vanguard, and State Street hold large…
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New York City pension system joins net zero asset group
What’s the story? The New York City Employees’ Retirement System (NYCERS)—under the direction of city Comptroller Brad Lander (D)—joined the Net-Zero Asset Owner Alliance (NZAOA), extending its commitment to ESG investment strategies. NZAOA’s members manage more than $9.5 trillion and commit to using their investments to reduce carbon emissions. Why does it matter? The NYCERS…
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Republican states pass 17 anti-ESG laws, Democratic states pass 8 pro-ESG in 2024
States passed 32 bills either supporting or opposing ESG investing in 2024. ESG investing is an asset management approach that considers the environment, social issues, and corporate governance practices. It’s a type of stakeholder investing, which argues shareholder returns should not be the only goal. Stakeholder investing contrasts with traditional approaches that exclusively consider financial…
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Missouri withdraws appeal in ESG lawsuit
Missouri Attorney General Andrew Bailey (R) announced the state will withdraw its appeal of a court ruling overturning two anti-ESG investment rules. The rules would have penalized asset managers who invested based on ESG factors without the written consent of their clients. The withdrawal leaves the constitutional question for similar rules unsettled in U.S. courts.…