Proxy advisors are the hidden force behind the rise of the ESG movement and its morph into a large-scale grift where American companies and investors are the victims. This little-known industry, dominated by Institutional Shareholder Services ("ISS") and its smaller competitor Glass Lewis, has fundamentally changed ESG.
What began as a public relations and marketing effort for corporations to show employees and customers they are responsible actors now functions as a corporate credit score where those who refuse to play the game are denied access to investor capital........Given the power of these ESG ratings, publicly traded companies and retail shareholders must have direct access to how these ratings are calculated. Unfortunately, proxy advisors call that information proprietary and refuse to disclose it.............
In May, the SEC announced its intention to regulate ESG claims by asset managers, insisting that they observe some level of standardization to prevent abuse. While this is a reasonable step, it fails to address proxy advisors' significant role in the process. The SEC must regulate proxy advisors in two ways:...........To Read More........
No comments:
Post a Comment