By Ross Kerber
Dec 10 (Reuters) - This is the weekly Reuters Sustainable Finance Newsletter, which you can sign up for here .
I've spent years tracking gripes from Republicans about the voting record of giant index funds, stemming from a burst of enthusiasm for environmental, social and governance investment reforms dating to 2020.
But since then top fund firms like BlackRock have backed many fewer shareholder resolutions and been friends to CEOs against activist pressure. A question now is whether U.S. President Donald Trump will order up rumored changes for the rules around proxy voting, the subject of my column this week that is linked below.
I have also flagged stories covering some fashionable new smart eyeglasses, the latest skirmish involving governance at Ben & Jerry's, and a European Union pullback on sustainability.
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Maybe Trump and GOP are done being mad at index funds
Financial executives and corporate leaders may learn soon if U.S. President Donald Trump will continue a Republican crusade against giant index funds.
Washington trade groups last month expected the White House to issue an executive order that could reshape corporate governance by imposing new limits on proxy advisers and on big passive index funds. Republicans have said the "Big Three" passive firms - BlackRock,BLK.N Vanguard and State Street STT.N – "use shareholder voting power to advance a liberal political agenda," according to a 2022 staff report by the Senate Banking Committee's Republican staff.
But the fund firms' votes have shifted to become more pro-management since 2022. A question now is whether the old Republican gripes about index funds still apply. I called around and read some tea leaves to explain the context to this question for my column this week, which you can read by clicking here.
Company news
AI-related privacy concerns and a new wave of rivals could challenge the growth of EssilorLuxottica's ESLX.PA new Ray-Ban Meta META.O smart glasses frames, say my colleagues in Milan.
The Ben & Jerry's Foundation had deficiencies in financial controls and governance, according to an audit conducted by its new owner Magnum. The findings have contributed to pressure on Ben & Jerry's independent board chair, say our recent stories.
The new state-owned Great British Energy company said it will deliver 15 gigawatts of clean energy generation and storage capacity by 2030, aimed at accelerating Britain's energy transition.
On my radar
Various policymakers including Trump's Wall Street regulator Paul Atkins are concerned about the declining number of U.S. public companies. But a 2023 paper from finance professors at Dartmouth's Tuck School and at Virginia Tech found those concerns discount the benefits of company mergers, which contribute to wealth gains.
European officials agreed to weaken the bloc's corporate sustainability laws, under pressure from companies. Shifts include delaying a compliance deadline and dropping a requirement for climate-change transition plans.
(Reporting by Ross Kerber; Editing by David Gregorio)
((ross.kerber@thomsonreuters.com; (617) 412 0093;))