Des Moines, Iowa — Iowa Congressman Zach Nunn is sponsoring a bill that would require new public disclosures from two companies that have an outsized role in the investing world.
Nunn’s legislation targets two firms that control shareholder votes and guide public firms’ investments that promote environmental, social and governmental or ESG priorities.
Some states have passed laws that forbid state contracts with companies that follow what’s called ESG investing. Iowa legislators considered a ban on companies, including banks, that do not invest in the gun industry, agriculture or the petroleum industry. Nunn, a Republican from Bondurant, says his bill does not call for that, but would require disclosure when those kind of policies are pursued for investments.
Nunn is a member of the House Financial Services Committee. Firms that handled shareholders’ proxy voting were initially seen as a way for investment advisors to avoid conflicts of interest. The two firms involved have argued new regulations, in general, add an unnecessary speed bump to the process of shareholder votes.
