Missouri AG Investigates Proxy Advisors Over ESG and DEI Practices

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  • Missouri AG Andrew Bailey announced that his office is investigating and has filed parallel lawsuits against Glass, Lewis & Co. (“Glass Lewis”) and Institutional Shareholder Services (“ISS”), two major corporate proxy advising firms, for alleged violations of state consumer protection laws.
  • According to the filings against Glass Lewis and ISS, the firms may have presented themselves as neutral providers of proxy voting advice while allegedly making recommendations based on environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) initiatives, regardless of potential financial impacts on shareholders.
  • The AG is seeking to compel both companies to respond to the Civil Investigative Demands, which request information about the firm’s proxy voting policies and practices.
  • We have previously reported on a similar investigation into Glass Lewis and ISS by Florida AG James Uthmeier. We have also reported on various letters sent by AGs regarding DEI and ESG initiatives, including letters sent by a group of 11 Republican AGs to financial institutions; a letter sent by a group of 19 Republican AGs to a major retailer; and a letter sent by 13 Democratic AGs to another major retailer.
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