Glass Lewis Sues Texas to Block ESG Curbs for Proxy Advisers (2)

Glass, Lewis & Co. on Thursday sued Texas to stop a law requiring proxy advisory firms to disclose that they deploy “nonfinancial factors” in developing ESG-related recommendations for shareholders voting at companies’ annual meetings.

SB 2337, which Texas Gov. Greg Abbott (R) signed into law in June, compels speech in violation of the First Amendment, Glass Lewis said in a complaint filed in the US District Court for the Western District of Texas. Glass Lewis and competitor Institutional Shareholder Services Inc. are the two biggest providers of proxy advice to pension funds and other large investors.

Republicans ...