Washington Examiner

GOP officials push proxy advisors in battle against ESG.

Republican State‍ Financial Officers Demand Answers from ​Wall Street Firms

More than a dozen Republican state‌ financial officers ⁣are ⁤taking a stand against ESG and “woke” ‍investing, demanding answers ⁢from ‌two influential Wall Street firms. In a ‍bold move, ⁤they have sent letters to Glass Lewis and Institutional Shareholder Services (ISS),​ accusing them of favoring left-leaning initiatives and excluding conservatives.

State Officials Fight for Conservative Values

A‍ total ⁢of 18 Republican state ⁣treasurers and auditors, ‍including West ‍Virginia Treasurer Riley Moore, known‌ for their opposition to environmental, social, and governance investing, have signed onto the letters. These officials are concerned‍ about the impact of⁤ ESG ⁤investing,⁣ which goes beyond profit maximization to consider factors like climate impact.

The Power of ​Glass ⁤Lewis and ISS

While Glass Lewis and ISS​ may ​not be⁣ household‍ names, they ⁣hold significant ⁢influence in⁢ the corporate world, making up an estimated 97% of the proxy advisory market.⁢ This latest ⁤round​ of letters follows previous correspondence from ​the state financial officers, who ‌were dissatisfied with ⁢the firms’⁣ initial responses. They‌ now demand further clarification on how ⁣Glass Lewis and ISS approach shareholder⁣ proposals.

Conservative Concerns and Alleged Bias

The letters express concern about how Glass Lewis and ISS​ treat shareholder proposals from ‌conservative organizations. The state treasurers argue that the firms⁣ support ESG-related proposals but ‌neglect those from conservative groups, potentially violating their own guidelines.‍ They question the firms’ commitment to impartiality and highlight Glass Lewis’s code of ethics, which ‍prohibits recommendations based on personal or ⁢political preferences.

Insufficient Response and Political Bias

The‍ financial officers criticize ISS for providing inadequate data ‍to address allegations of political ‍bias against conservative proposals. They highlight the lack ‌of support for conservative groups and express concern that ⁢ISS may be pushing political agendas. The letters call for transparency and urge the firms to ‍support fiduciary resolutions that prevent debanking based on political matters, as⁤ there are fears ⁤that conservative and religious groups may be targeted.

Republican Pushback Against ⁣ESG

These letters are ⁢part of a ‍broader effort ​by GOP state officials to push back against ESG. BlackRock, the⁢ world’s largest money manager, has‌ also faced criticism for embracing ESG principles. Republican-led states have divested or announced plans to ​divest hundreds ⁤of millions ‌of dollars from the firm. BlackRock’s⁤ annual report revealed low support for shareholder ⁤proposals on environmental​ and social matters, suggesting that the ⁣GOP pushback may be making an impact.

It​ is worth ‍noting that BlackRock CEO ⁤Larry Fink’s annual letter this year did not mention ESG⁢ and downplayed the climate, signaling a shift​ in tone as Republican opposition grows.

How do state officials propose addressing the alleged⁣ bias and exclusion ⁤within Glass ⁢Lewis and ISS? What measures⁤ do⁣ they demand for greater transparency and accountability in the formulation of⁢ voting policies?

Interactions between state‍ officials and ⁢these firms regarding ESG and “woke” investing.

Glass⁢ Lewis and ISS provide⁢ proxy advisory‌ services to institutional investors,‌ offering recommendations on how to⁣ vote on various corporate matters, including board appointments and executive compensation packages.⁣ Their opinions⁣ carry a lot of weight, as institutional investors often follow their guidance when making voting decisions.

Accusations of Bias and Exclusion

The letters⁤ sent by‍ the Republican⁣ state financial ‍officers accuse Glass Lewis and ⁢ISS of openly ⁣favoring left-leaning initiatives and agendas ⁣while excluding conservatives.‌ They argue that the firms’ ESG policies and voting recommendations ‌disproportionately⁢ focus on social and⁤ environmental issues, effectively ignoring the concerns and values of conservative investors.

This alleged bias⁤ infringes ​upon ⁢the principles of fairness and inclusivity that should guide the investment industry. State officials argue that institutional investors should be able to make decisions based on their own values, without feeling⁤ pressured to conform to‍ a specific ideological agenda.

A Call for Transparency and Accountability

In their letter, the state officials demand greater transparency⁣ and accountability from⁣ Glass Lewis and ISS. They want to understand‌ how the firms formulate their voting policies and ensure that all perspectives, including those of conservative investors, are ⁢taken into account. The ⁢goal‌ is to foster a more ⁢balanced⁢ and inclusive approach ​to ⁤corporate governance that represents the values ​and preferences‍ of all investors.

Furthermore, state officials have‌ expressed concerns about the ​potential financial impact⁣ of ESG investing⁢ on⁤ their respective states. They⁢ argue that prioritizing ESG factors may limit investment opportunities and hinder economic growth. ⁣By demanding answers and greater participation in the decision-making process, these officials hope to protect ‌the financial interests of their‌ states and constituents.

The ‍Battle for Ideological Neutrality

The Republican state financial officers’ demand ⁤for answers from Glass Lewis and ISS highlights a larger ideological battle in​ the⁤ investment industry. As ESG and socially responsible investing gain prominence, conservative ​investors feel ‍that their perspectives are being marginalized. This conflict underscores the importance of ensuring that investment decisions are‌ based on thorough analysis,‌ diverse viewpoints, and respect for all ⁤investors’ values.

While it remains to be seen how‌ Glass Lewis and ISS will respond ⁣to these letters, the actions of the Republican ⁣state financial officers ⁣serve ⁢as a reminder ‍that the ⁤investment industry must strive for fairness, transparency, and inclusivity. Only by addressing⁤ concerns ‌and including a⁣ wide range of ⁢perspectives can⁤ the ‍industry‌ move forward ⁢in a way that respects the values and preferences ‍of all investors.



" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases

Related Articles

Sponsored Content
Back to top button
Available for Amazon Prime
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker