SB 2337: Texas Requires Proxy Advisors to Disclose ESG-Based Voting
Summary
SB 2337 was enacted in June 2025 and requires proxy advisors to disclose when nonpecuniary interests, such as "environmental, social, or governance (ESG) investing, diversity, equity, or inclusion (DEI), and social credit or sustainability scores," influences their votes. The disclosure must state that "the service is not being provided solely in the financial interest of the company's shareholder because it is based wholly or partly on one or more nonfinancial factors." It also must be published to the proxy advisor's website. A violation of the Act constitutes a deceptive trade practice.
Impacted Sectors
Additional Information
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