A 21-state coalition of Republican attorneys general have written to two third-party proxy advisory companies, Institutional Shareholder Services (ISS) and Glass Lewis, challenging their environmental, social, and governance (ESG) practices.
The coalition, led by Utah Attorney General Sean D. Reyes, raised concerns about whether the two firms’ ESG considerations affect proxy voting recommendations that conflict with the financial interests of their clients.
ESG refers to a set of standards used by a company in the investment decision-making process to measure sustainable and ethical impacts.
Attorney General Reyes said in a statement accompanying the letter (pdf) that both ISS and Glass Lewis “support the priorities established by an international group of financial institutions committed to aligning their lending and investment portfolios with net-zero emissions by 2050.”…