Attorneys General from Texas, Nebraska, Iowa, and West Virginia have filed lawsuits against proxy advisory firm Institutional Shareholder Services (ISS). The states allege that ISS misled investors by integrating ESG, DEI, and climate considerations into its voting recommendations without sufficient ties to financial returns. These legal actions follow a broader trend of anti-ESG political movements in the US, including federal oversight orders and SEC scrutiny. The lawsuits also raise concerns about potential conflicts of interest where ISS provided consulting services to the same companies it was researching for investors.
