Trump orders crackdown on proxy advisors for supporting ESG, DEI

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illuminem summarises for you the essential news of the day. Read the full piece on ESG Today or enjoy below:

🗞️ Driving the news: President Donald Trump has issued an executive order directing U.S. regulators to crack down on proxy advisory firms over their support for ESG and DEI
• The order targets Glass Lewis and Institutional Shareholder Services (ISS), which together control more than 90% of the proxy advisory market

🔭 The context: Trump accuses the firms of using their market power to advance “politically motivated” agendas
• The order calls for investigations into potential antitrust, unfair competition, and deceptive practices
• The SEC, FTC, and Department of Labor are instructed to increase oversight, including reviewing ESG-related voting advice and fiduciary duties
• The move follows lawsuits and investigations by Republican-led states and broader political attacks on ESG investing

🌍 Why it matters for the planet: Proxy advisors play a key role in shaping shareholder votes on climate action
• Restrictions on ESG guidance could weaken investor pressure on companies to cut emissions, manage climate risks, and improve environmental transparency
• Reduced scrutiny of corporate environmental impacts may slow progress toward decarbonization and climate resilience

⏭️ What’s next: Regulators may move to impose new registration, transparency, or reporting requirements on proxy advisors
• Legal challenges are likely, as firms defend their role in providing independent governance and sustainability analysis

💬 One quote: Proxy advisors “regularly use their substantial power to advance and prioritize radical politically-motivated agendas,” Trump wrote in the order

📈 One stat: Glass Lewis and ISS together account for over 90% of the U.S. proxy advisory market.

See on illuminem's Data Hub™ the sustainability performance of companies most affected by shareholder ESG resolutions

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