News | 04.03.19
Senate Panel Calls for More Scrutiny of ESG Investing
Institutional investors, index fund managers, and proxy advisory firms applying environmental, social, or governance (ESG) principles to investments came under scrutiny Tuesday during a hearing held by the Senate Committee on Banking, Housing and Urban Affairs. Of particular concern to Committee Chairman Mike Crapo (R-ID) was how ESG shareholder proposals impact retail investors. "It is important to understand how institutional investors are voting the shares of the money they manage to make sure that retail investors' interests are being reflected in these voting decisions," Crapo said at the hearing, noting that in the 2018 proxy season, ESG proposals were the largest category of shareholder proposals on proxy ballots.
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