By Ross Kerber
Jan 8 (Reuters) - I'm late to say Happy 2025 but after our holiday publication gap it feels like a good time for a rundown of some major questions facing ESG finance in 2025. Click on the link below to see my column today on four big topics to watch.
I've also flagged a number of corporate moves this week that look tied to U.S. politics including JPMorgan's withdrawal from a climate coalition and Meta's decision to end a fact-checking program and lower limits on contentious discussions.
Looking over the sum total of the items maybe we should call this "ESG pullback week."
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Four ESG finance topics for 2025
In my column this week I wrote about topics to watch in ESG finance that will determine the balance of power among shareholders, corporate leaders and politicians. The key points:
* Will asset managers face new restrictions?
* How will proxy voting trends look this proxy season?
* CEOs get painted as heroes or villains, but they're all rich
* With Republicans dominant in Washington, D.C. some changes will be routine and some...well, let's see how much companies stand up for their people.
You can read more in my column this week by clicking here.
Company News
In a new legal effort, Exxon XOM.N sued California Attorney General Rob Bonta and several environmental groups over their criticism of its plastics recycling efforts. Last year the energy leader sued activist investors who filed a proposal on climate change.
Completing a cycle of withdrawals by the largest U.S. banks, top lender JPMorgan Chase JPM.N quit a major climate coalition amid rising U.S. political pressure.
Bowing to criticism from conservatives, social media company Meta Platforms META.O scrapped its U.S. fact-checking program and lowered limits on contentious discussions.
On my radar
Among pending state legislation aiming to curb ESG investment decisions is Wyoming's "Stop ESG-State funds fiduciary duty act." The state's retirement system estimates that the law, if passed, would reduce revenue by $1.16 billion over three years.
Groups representing religious investors, pension funds and others called for steps to ensure full participation in shareholder meetings, including respecting the right to file proposals and to protect open discussion as companies move to online formats.
Activists also filed a proposal calling for UnitedHealth Group UNH.N to report "on the public health-related costs and macroeconomic risks created by the company’s practices that limit or delay access to healthcare." It is a charged topic after a company leader was gunned down in Manhattan last month.
London-based activist investor group Tulipshare wants Berkshire Hathaway BRKa.N directors to oversee risks associated with artificial intelligence such as data leaks, privacy intrusions or business disruptions. Tulipshare submitted a resolution to create a committee on the matter.
Many companies have incorporated ESG considerations into their executive pay plans, but now "some are re-evaluating their approach given the recent shifts in the political and legal landscape," according to a new analysis by ISS-Corporate.
(Reporting by Ross Kerber in Boston; Editing by David Gregorio)
((ross.kerber@thomsonreuters.com; (617) 412 0093;))
