Proxy advisory firm drops DEI recommendations (2025)

• Key terms related to ESG
• Enacted ESG legislation
• Areas of inquiry and disagreement
• Opposition to ESG
• Federal ESG rules and regulations
• Public pension information by state
• Ballotpedia's ESG legislation tracker
• Economy and Society: Ballotpedia's weekly ESG newsletter
  • Subscribe here

See also: Opposition to environmental, social, and corporate governance (ESG) investing, Environmental, social, and corporate governance (ESG)

February 18, 2025

Institutional Shareholder Services (ISS), the largest proxy advisory firm, announced Feb. 11 that it will no longer consider DEI characteristics in its corporate voting recommendations.

Corporate diversity, equity, and inclusion (DEI) policies fall under the social pillar of ESG investing. ISS’s move away from DEI voting preferences joins a larger trend, with companies like Vanguard making similar moves in the last several weeks.

According to ESG Today:

“

The move by ISS forms part of a series of major adjustments being made to DEI policies by U.S. companies and investors, which began following a Supreme Court ruling that struck down Harvard’s use of race-based affirmative action criteria in college admissions, and led to increased scrutiny over the legality of key aspects of corporate DEI policies. The phenomenon has picked up the pace since the election of Donald Trump, who signed an executive order after taking office eliminating DEI preferencing in federal contracting, and required contractors to affirm that they “will not engage in illegal discrimination, including illegal DEI.” ISS has itself been a target of political action, with the company being warned in 2023 by 21 state Attorneys General that its support for DEI and climate-related issues at companies could be seen as being in violation of their duties to consider their clients’ financial interests.

”

See also

• Environmental, social, and corporate governance (ESG)
• Economy and Society: Ballotpedia's ESG newsletter

External links

• Search Google News for this topic

Footnotes

Ballotpedia

About

Overview • What people are saying • Support Ballotpedia • Contact • Contribute • Job opportunities

---

Executive: Leslie Graves, Founder and CEO • Gwen Beattie, Chief Operating Officer

Communications: Alison Graves, Director of Communications • Carley Allensworth • Abigail Campbell • Frank Festa • Sarah Groat • Nathaniel Harwood • Dillon Redmond • Erica Shumaker
External Relations: Geoff Pallay, Director of External Relations • Ken Carbullido, Vice President of Election Product and Technology Strategy • Ashley Fleming • Thomas Mardik • Hannah Nelson
Operations: Meghann Olshefski, Director of Operations • Amanda Herbert • Mandy Morris • Caroline Presnell • Kelly Rindfleisch
Tech: Matt Latourelle, Director of Technology Operations • Ryan Burch • Kirsten Corrao • Beth Dellea • Travis Eden • Tate Kamish • Margaret Kearney • Eric Lotto • Joseph Sanchez • Mary Susmitha

Contributors: Scott Rasmussen

---

Editorial Content

Josh Altic, Director of Content • Daniel Anderson, Associate Director of Elections & Data • Cory Eucalitto, Associate Director of Features • Ryan Byrne, Managing Editor of Ballot Measures • Mandy McConnell, Managing Editor of News • Doug Kronaizl, Managing Editor of Local Expansion • Abbey Smith, Managing Editor of Elections • Janie Valentine, Managing Editor of Law • Joel Williams. Managing Editor of Events • Andrew Bahl • Jaclyn Beran • Marielle Bricker • Joseph Brusgard • Emma Burlingame • Kelly Coyle • Jon Dunn • Thomas Ellis • Nicole Fisher • Joseph Greaney • Thomas Grobben • Brianna Hosea • Molly Kehoe • Tyler King • Glorie Martinez • Norm Leahy, Senior Editor • Nathan Maxwell • Jimmy McAllister • Brandon McCauley • Ellie Mikus • Ellen Morrissey • Mackenzie Murphy • Kaley Platek • Samantha Post • Adam Powell • Annelise Reinwald • Ethan Rice • Spencer Richardson • Victoria Rose • Briana Ryan • Myj Saintyl • Maddy Salucka • Emma Soukup • Alexis Thacker • Mina Vogel • Samuel Wonacott • Trenton Woodcox