{"id":2337064,"date":"2024-09-05T07:53:56","date_gmt":"2024-09-05T11:53:56","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-treasurers-open-new-front-in-war-over-esg-activist-proxy-adviser-washington-examiner\/"},"modified":"2024-09-05T08:01:16","modified_gmt":"2024-09-05T12:01:16","slug":"gop-treasurers-open-new-front-in-war-over-esg-activist-proxy-adviser-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-treasurers-open-new-front-in-war-over-esg-activist-proxy-adviser-washington-examiner\/","title":{"rendered":"GOP treasurers open new front in war over ESG: \u2018Activist\u2019 proxy adviser &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgop-treasurers-open-new-front-in-war-over-esg-activist-proxy-adviser-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2337064&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A group of 15 Republican state treasurers \u2064has initiated a campaign against \u200cenvironmental,\u2062 social, and governance (ESG) investing by targeting the Institutional Shareholder Services (ISS), a major proxy advisory firm. They claim that ISS&#8217;s benchmark policies are overly focused on ESG priorities, which \u200dthey assert conflicts with market demands and \u2063the traditional goal of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-florida-ending-disneys-special-privileges-has-other-woke-ceos-scared\/\" title=\"Report: Florida Ending Disney\u2019s Special Privileges Has Other Woke CEOs Scared\">maximizing shareholder returns<\/a>. The treasurers expressed \u2062their concerns in a \u200cletter, \u2064citing a report from the nonprofit Consumers&#8217; Research,\u2063 which \u2062found\u2063 that a majority\u2064 of 192 climate-related shareholder proposals supported by ISS\u2064 did not\u2063 receive majority backing. They criticized ISS for claiming its policies are &#8220;centrist,&#8221; arguing that they appear to be &#8220;activist&#8221; instead. The treasurers are urging ISS to reassess its ESG benchmark policy and to revise its voting recommendations, particularly regarding the representation of women on \u2063corporate boards. This effort is part of\u200d a broader\u2064 Republican resistance to ESG initiatives and corporate diversity and\u2064 inclusion policies, exemplified by actions like West Virginia&#8217;s ban on certain banks over their ESG stances.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">GOP treasurers open new front in war over ESG: &lsquo;Activist&rsquo; proxy adviser<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1742741\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><strong>EXCLUSIVE &mdash;<\/strong> A group of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/republicans\/\" target=\"_blank\" rel=\"noopener\" title>Republican<\/a> state treasurers has launched a new foray into the battle against <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/esg\/\" target=\"_blank\" rel=\"noopener\" title>environmental, social, and governance<\/a>, accusing the country&rsquo;s largest proxy adviser of having policies out of step with the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/markets\/\" target=\"_blank\" rel=\"noopener\" title>market<\/a> and activist in nature.<\/p>\n<div class=\"article-paywall\">\n<p>The group of 15 state financial officers is targeting the benchmark policy of Institutional Shareholder Services, a massive proxy advisory firm that gives shareholders recommendations on how to vote on corporate issues. The Republican officers argued in a <a href=\"https:\/\/sfof.com\/wp-content\/uploads\/2024\/09\/Financial-Officer-Letter-to-ISS-1.pdf\" target=\"_blank\" rel=\"noopener\" title>letter<\/a> sent Thursday that ISS&rsquo;s basic benchmark policy is skewed and that ISS advised votes for ESG priorities far in excess of the market.<\/p>\n<p>ESG is a financial model that centers on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-live-house-oversight-committee-holds-esg-hearing\/\" title=\"WATCH LIVE: House Oversight Committee holds ESG hearing\">compelling social change<\/a> through investment and divestment. It is a model that does not solely look at maximizing profit but also incorporates other elements into <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-dems-pass-massive-voting-rights-bill-conservatives-claim-it-will-chill-speech-demolish-election-integrity\/\" title=\"House Dems Pass Massive\u00a0\u2018Voting Rights\u2019 Bill; Conservatives Claim It Will Chill Speech, Demolish\u00a0Election Integrity\">financial decisions<\/a>.<\/p>\n<p>Republicans have thrust ESG into the mainstream through fights such as this one. They argue that an overt focus on ESG in making corporate decisions runs afoul of the responsibility of corporations and advisers such as ISS solely to maximize shareholder returns.<\/p>\n<p>The treasurers outlined their grievances in the letter, citing a <a href=\"https:\/\/consumersresearch.org\/wp-content\/uploads\/2024\/07\/CR-ISS-Analysis.pdf\" target=\"_blank\" rel=\"noopener\" title>report<\/a> from the conservative nonprofit group Consumers&rsquo; Research, which is known for opposing corporate ESG. The group reviewed 192 climate-related shareholder proposals that ISS&rsquo;s benchmark policy appeared to recommend voting for.<\/p>\n<p>The report found that just 17% of those proposals received majority support, showing that ISS&rsquo;s benchmark policy was out of step with the market.<\/p>\n<p>The group contends that ISS heavily favors ESG policies even when there is not a demand for them. The treasurers took umbrage to remarks from Lorraine Kelly, ISS&rsquo;s global head of investments stewardship, who said during a March CNBC appearance that ISS&rsquo;s benchmark was &ldquo;pretty centrist.&rdquo;<\/p>\n<p>&ldquo;These results directly conflict with your claim that your benchmark policy is &lsquo;pretty centrist,&rsquo;&rdquo; the letter reads. &ldquo;Rather, your benchmark policy appears to be &lsquo;activist&rsquo; by any reasonable definition of the term, and this is highly problematic.&rdquo;<\/p>\n<p>The group called upon ISS to &ldquo;immediately reevaluate&rdquo; its benchmark policy regarding ESG. The letter was sent as part of the ISS&rsquo;s annual request for feedback on its benchmark policy.<\/p>\n<p>The treasurers also asked ISS to change some of its social benchmark policies for the 2025 shareholder proposal season. For instance, they said ISS&rsquo;s benchmark policy includes generally voting against directors of companies that do not have women on their boards.<\/p>\n<p>This is just the latest in the Republican pushback against ESG and the somewhat related concept of corporate diversity, equity, and inclusion policies.<\/p>\n<p>For instance, earlier this year, West Virginia Treasurer Riley Moore announced his state was banning four more banks from state contracts over their ESG policies and &ldquo;boycotts&rdquo; of fossil fuel companies.<\/p>\n<p>West Virginia had already placed five firms on its restricted institutions list &mdash; BlackRock, Goldman Sachs, J.P. Morgan, Morgan Stanley, and Wells Fargo. The first five firms on the list have lost access to some $18 billion in annual inflows and outflows.<\/p>\n<p>In a&nbsp;<a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/2941273\/mississippi-slaps-blackrock-cease-and-desist-order-esg\/\" target=\"_blank\" rel=\"noreferrer noopener\">cease-and-desist order<\/a>&nbsp;from this year, Mississippi Secretary of State Michael Watson accused money manager BlackRock, a frequent target of anti-ESG ire, of making &ldquo;fraudulent statements, omissions, and other misrepresentations&rdquo; about its ESG strategies.<\/p>\n<p>Also this year, Texas State Board of Education Chairman Aaron Kinsey notified BlackRock that the state was&nbsp;<a href=\"https:\/\/www.washingtonexaminer.com\/policy\/2927532\/texas-withdraws-8-billion-blackrock-over-esg-biggest-divestment\/\" target=\"_blank\" rel=\"noreferrer noopener\">pulling some $8.5 billion<\/a>&nbsp;in investments from it over its ESG policies.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong><\/p>\n<p>The group representing Republican state financial officers, the State Financial Officers Foundation, announced in late April the formation of a political arm to defend its members and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lindsey-graham-calls-for-secondary-sanctions-on-china\/\" title=\"Lindsey Graham Calls For Secondary Sanctions On China\">push back harder<\/a> against ESG.<\/p>\n<p>&ldquo;There has been a dramatic uptick in their state-level lobbying, and we believe that&rsquo;s a direct result of the work that our members and others have done to divest because of their approach to ESG,&rdquo; the group&rsquo;s executive director, Noah Wall, told the <em>Washington Examiner<\/em> during an interview this year.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1742741\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1742741\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Republican state treasurers have initiated a new effort in their campaign against environmental, social, and governance (ESG) principles, claiming that the largest proxy advisory firm in the U.S. has policies that are misaligned with market trends and overly activist. This coalition of 15 state financial officials is focusing on the benchmark policy of Institutional Shareholder Services (ISS), which provides voting recommendations to shareholders on corporate matters. In a letter sent Thursday, they argued that ISS&#8217;s fundamental benchmark policy is biased and promotes ESG priorities disproportionately compared to market standards. ESG represents a financial approach aimed at driving social change through investment choices that consider factors beyond mere profit maximization.<\/p>\n<p>The Republican treasurers contend that an excessive emphasis on ESG undermines the primary responsibility of corporations and advisers like ISS to prioritize shareholder returns. They referenced a report from Consumers\u2019 Research, a conservative nonprofit opposed to corporate ESG initiatives, which analyzed 192 climate-related shareholder proposals recommended by ISS\u2019s benchmark policy; only 17% received majority support, indicating a disconnect with market sentiment.<\/p>\n<p>The treasurers expressed dissatisfaction with comments made by Lorraine Kelly from ISS during a CNBC interview where she described their benchmark as &#8220;pretty centrist.&#8221; They countered this assertion in their letter by stating that the data suggests it is more accurately characterized as &#8220;activist,&#8221; which they find concerning. The group urged ISS to promptly reassess its ESG-related benchmark policies.<\/p>\n<p>This correspondence was part of ISS&#8217;s annual feedback solicitation regarding its benchmarks. Additionally, they requested changes for upcoming shareholder proposal seasons\u2014specifically criticizing policies such as voting against directors of companies lacking female board members.<\/p>\n<p>This action reflects ongoing Republican resistance against ESG initiatives and related diversity efforts within corporations. Earlier this year, West Virginia Treasurer Riley Moore announced further restrictions on banks due to their ESG stances affecting fossil fuel companies; five banks had already been banned from state contracts due to similar reasons.<\/p>\n<p>Mississippi Secretary of State Michael Watson also issued a cease-and-desist order against BlackRock for allegedly making misleading statements about its ESG strategies. Furthermore, Texas State Board of Education Chairman Aaron Kinsey informed BlackRock about withdrawing $8.5 billion in investments over its stance on ESG issues.<\/p>\n<p>In late April, the State Financial Officers Foundation\u2014a group representing these Republican state officials\u2014announced it would establish a political arm dedicated to defending its members and intensifying opposition against ESG practices. Noah Wall, the group&#8217;s executive director, noted an increase in lobbying efforts at the state level directly linked to actions taken by members regarding divestment based on these issues<\/p>\n","protected":false},"author":3360,"featured_media":2337065,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/09\/iss-esg.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[14436,7003,6203,40159,25602],"class_list":["post-2337064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-activism","tag-esg","tag-gop","tag-proxy-adviser","tag-treasurers"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/09\/iss-esg.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2337064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2337064"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2337064\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2337065"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2337064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2337064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2337064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}