Florida Attorney General James Uthmeier recently announced an investigation into an advisory firm that provides research and voting recommendations to institutional investors for potential violations related to Environmental, social, and governance and Diversity, equity, and inclusion policies.
"Today, I directed my office to open an investigation into proxy voting advisors Glass Lewis and ISS Inc. for potential antitrust violations and misrepresentations related to their ESG and DEI investing policies," Uthmeirer said.
The investigation also comes weeks after Gov. Ron DeSantis declared ESG and DEI all but erased in Florida.
"You are now seeing that ESG is all but dead. Black Rock and even Disney are getting rid of some of the DEI stuff," DeSantis said. "The tide it seems like it really shifted."
In a statement on X, James Uthmerier said Glass Lewis and ISS Inc. may have violated the Florida Unfair and Deceptive Trade Practices Act. Uthmerier also said the firm allegedly broke antitrust laws by adopting and enforcing the policies.
Uthmerier mentioned Glass Lewis and ISS Inc. having 97% of the proxy market.
"Glass Lewis and ISS told their clients and the public that their decisions were not politically motivated, and instead based on purely economic factors. But we can see that pushing racial and gender quotas and attacking the concept of meritocracy destroys shareholder value," Uthmeier said.
He also said ESG has broadly underperformed for years.
"We won't allow ESG goals to handcuff Florida business and threaten investments of Floridians. If these proxy advisors use their overwhelming market power to advance partisan political agendas rather than maximize shareholder value, we will hold them accountable," Uthmeier said.
"This investigation is the first step in getting to the bottom of whether Floridians have had their money repurposed for political agendas rather than for maximum returns. It's just another way we are fighting to make Florida safe, strong, and free," Uthmerier added.
