JACKSON, Miss – The Office of the Mississippi Secretary of State has opened investigations into two of the nation’s largest proxy advisory firms, Institutional Shareholder Services Inc. (ISS) and Glass Lewis.

The Securities Division is investigating whether the firms are recommending votes for climate-related shareholder proposals which do not enhance or protect shareholder value. The promotion of environmental, social, and governance (ESG) factors would be in direct violation of their fiduciary duty and conflict with previous statements issued by the companies.

ISS and Glass Lewis have a combined market share likely exceeding 90% and both have a major influence in the United States, global economies, and the governance choices of publicly traded companies. ISS alone covers 100 markets and 50.1k meetings, executes 14.1M ballots, and serves 4200 institutional clients.

Mississippi Secretary of State Michael Watson:

“Accountability and transparency have remained core functions of my public service tenure, and we must protect Mississippi investors from any companies who breach trust and fail to uphold stated goals of enhancing and protecting shareholder value. In Mississippi, we will hold those accountable who willingly neglect their fiduciary responsibilities.”

For questions and concerns, contact the Securities Division at securities.customerservice@sos.ms.gov or (601) 359-1334.