Glass Lewis has written to U.S. state policymakers, reinforcing its apolitical stance toward ESG investing.
On May 15, a group of Republican state treasurers wrote a letter to the proxy advisor, seeking further information on its approach toward environmental and social shareholder proposals.
Glass Lewis issued its response on June 29, stating that it evaluates all environmental and social issues “through the lens of long-term shareholder value” and does “not seek to achieve any political or social goals” through its recommendations on ESG proposals.
In response to a question concerning how the advisor evaluates climate change-related proposals, Glass Lewis noted that “many companies with global operations will need to comply with strengthening regulations concerning greenhouse gas emissions and other environmental impacts.”
In situations where the advisor supported these resolutions, it was based on the belief that “additional reporting would help mitigate material risks.”
Glass Lewis believes that shareholders “should not be involved in the day-to-day management of a company’s business.” Given this belief, the advisor said that it generally opposes proposals seeking greenhouse gas (GHG) emissions reduction targets that “overstep the boundary between the purview of shareholders and that of the board.”
In response to a question as to whether the advisor agrees with the views and investing positions of various asset management clients in regard to ESG voting policies, Glass Lewis specified that it “does not take positions on the merits of different approaches.”
In the first six months of 2023, Glass Lewis has endorsed 34.3% of climate change-related shareholder proposals subject to a vote at U.S.-listed companies, compared to 50% throughout 2022, according to Insightia’s Voting module.
Fellow proxy advisor Institutional Shareholder Services (ISS) has taken similar steps to emphasize its apolitical role in ESG investing. In a June 13 letter, ISS CEO Gary Retelny called for an end to the increasing “politicizing [of] proxy advice.”