The U.S. Securities and Exchange Commission (SEC) has ended its investigation into BlackRock, Vanguard, and State Street over their involvement in climate-related shareholder activism linked to ExxonMobil’s 2021 annual meeting. The probe examined the firms’ connections to Climate Action 100+, an investor initiative that promotes corporate action on climate risks and greenhouse gas emissions. Although the SEC will not pursue charges, it has raised concerns about coordinated shareholder activities.
The regulator warned that participation in such campaigns could affect asset managers’ eligibility for simplified disclosure requirements and potentially trigger stricter reporting obligations. The development signals increased regulatory scrutiny of environmental, social, and governance (ESG) initiatives in the United States, while raising questions about how institutional investors can engage with companies on climate issues while complying with securities regulations.
Reference: ESG News