/>iThe Missouri Attorney-General, Republican Andrew Bailey, recently announced an investigation into the two principal proxy advisory firms for potential violations of Missouri law “related to their promotion of radical environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) agendas . . . into corporate boardrooms under the guise of impartial investment advice.” Specifically, the Missouri AG focused on an alleged “coordinated pattern of ideological activism dressed up as financial guidance[] [since] [c]orporate leaders, fearing backlash or shareholder pressure, often feel compelled to accept these proposals, even when doing so risks undercutting company performance or violating fiduciary duties.”
The Missouri AG is not the first Republican attorney general to have pursued this type of investigation into proxy advisory firms. In March 2025, the Florida Attorney General announced a similar investigation, focused on whether “motivations for recommending ESG to investors may have been to advance particular ideological views.”
These investigations demonstrate the continued salience of ESG-focused investing as an object of political dispute in the United States, as politicians continue to devote significant efforts to either advancing this proposition or seeking to prevent it entirely. The focus on ESG-related investing has also expanded beyond those directly involved in decision-making to other entities more tangentially related to such activities. All companies linked to these activities--whether pro- or anti-ESG--should carefully evaluate the legal and regulatory landscape for potential legal liability.
Missouri Attorney General Andrew Bailey announced that his Office has launched an investigation and filed parallel lawsuits against two [] proxy advisory firms [] to ensure their compliance with lawful demands for information related to their promotion of radical environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) agendas. While presenting themselves as neutral advisors, both companies have used their influence to push far-left DEI and ESG agendas into corporate boardrooms under the guise of impartial investment advice. “Missourians deserve answers as to why the unseen power brokers, controlling much of corporate America, are pushing a leftist worldview at the expense of millions of honest investors,” said [AG] Bailey. ... “Missouri is using every tool under the law to force compliance. These are foreign-owned actors manipulating the U.S. economy, and we will not let them thrive any longer.”
