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Proxy advisors push back against pushback (2023)
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
The two largest proxy advisory services – Institutional Shareholder Service (ISS) and Glass-Lewis – responded on January 31 to an inquiry into the services’ ESG policies launched last month by 21 state attorneys general. Both companies stood by their approaches to considering certain ESG factors in client voting recommendations:
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Top U.S. proxy advisers Glass Lewis and Institutional Shareholder Services on Tuesday defended their corporate voting recommendations on environmental and social matters, with both saying they remain focused on long-term shareholder value. The two companies were questioned by Republican attorneys general from 21 states earlier this month about whether their guidance on issues like climate change or boardroom diversity violate their duties to clients. In a response letter dated Jan. 31, Glass Lewis Executive Chairman Kevin Cameron pushed back on the suggestion and said that under the firm's benchmark policy it routinely recommends against shareholder proposals "that -- however worthwhile as a social goal -- have not demonstrated a nexus to shareholder value." In addition, Cameron wrote that issues like how companies manage the risks and opportunities presented by climate change "is widely recognized as a material risk-return factor today." Nearly all companies in the S&P 500 now publish sustainability reports using various third-party standards, he noted. … In a separate letter provided by a spokesman, ISS Chief Executive Gary Retelny wrote that while environmental, social and governance (ESG) considerations have grown more important to investors, "fulfilling our fiduciary and contractual responsibilities to our clients remains the foundation of our business."[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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