Last week, the Chairman of the U.S. Securities and Exchange Commission, Gary Gensler, announced that the SEC would not enforce rules regarding proxy voting which were put in place under the prior administration in 2020, and which were seen as placing significant restrictions on shareholders' ability to engage companies on ESG issues through the proxy and shareholder proposal process. The Chairman has recommended that these rules be revisited.
This development accords with the Biden administration's approach of reviewing and potentially reversing policies put in place under the previous administration which potentially affect consideration of ESG issues - such as the Department of Labor's rules on the consideration of "non-pecuniary" (potentially, ESG) factors for ERISA plans (which we have previously written about here).