ESG+ Newsletter – 02 July 2026

Glass Lewis and ISS secure another court victory 

According to Reuters, proxy advisors Glass Lewis and ISS have secured another legal victory after a US federal judge granted a preliminary injunction preventing an Indiana law from taking effect. The ruling marks the third recent courtroom success for the firms, following similar decisions in Kansas and Texas, as they continue to challenge state-level legislation targeting proxy advisors. 

The Indiana legislation would have required proxy advisors recommending votes against company management to provide a written financial analysis supporting their recommendations or disclose that no such analysis had been undertaken. Supporters argued the measure would have helped ensure voting advice remained focused on financial considerations rather than broader ESG issues. 

Glass Lewis and ISS argued that the legislation infringed their constitutional rights, including freedom of speech. The court agreed, finding that the measure amounted to viewpoint discrimination because it imposed additional obligations on proxy advisors only when their voting recommendations diverged from those of company management. 

While the ruling represents another setback in legislative efforts to tighten oversight of proxy advisors, the broader legal battle is far from over. Cases in Texas, Kansas, Kentucky and Florida remain ongoing. At the same time, Glass Lewis and ISS face growing competitive pressure from new entrants seeking to harness AI technology to disrupt the highly concentrated proxy advisory market, making 2026 a particularly challenging year for both firms. 

California delays new corporate climate reporting regulations 

What will it cost America to meet data centre electricity demand? 

America’s electricity grid is strained by greater demand than its aging infrastructure can handle, raising electricity prices and worsening the affordability crisis for American families and businesses. The Trump administration’s support for a fossil fuel-heavy energy approach is projected to add $30 billion annually to customer bills by 2030, according to Forbes. Despite this, solar and other clean sources are expected to account for more than 75% of new grid capacity this year – accelerating this build-out could cut load growth costs by $5.1 billion annually by 2030. However, power demand growth remains uncertain, with roughly half of planned 2026 data centres delayed due to supply chain and grid access constraints. Some data centre developers have proposed bypassing the grid entirely with behind-the-meter gas plants, which crowds out other natural gas consumers and may also contribute to energy price increases for consumers. As data centre power consumption comes into focus, the environmental costs of AI infrastructure are drawing scrutiny at the highest levels. UN Secretary-General António Guterres recently called on AI firms to disclose the full carbon, water, and land footprint of their data centres, warning that communities should not be left bearing hidden costs they never agreed to. Renewable energy solutions can offer a more environmentally friendly, cheaper, and faster path to meeting data centre power demand at scale, requiring less up-front investment, deploying faster, and insulating customers from fuel price volatility.  

World Bank shifting priorities amid European heat wave

The heat wave that has seen widespread chaos across Europe in the past week is a “dramatic warning” regarding climate change, according to Teresa Ribera, Vice President for the Clean Transition. As reported by the Guardian, Ribera has called on the wider European community to take heed of the unprecedented levels of heat seen across the bloc, as clear evidence of not only the reality of the climate crisis, but also a demonstration of its negative impacts. Ribera’s calls for attention are not without substantiation, with multiple countries hitting record temperatures, which have been linked to more than 1,300 excess deaths, according to WHO chief Tedros Adhanom Ghebreyesus.

Despite the events of the past week, on the global stage, the World Bank is set to abandon its goal to devote 45% of funding resources to climate change projects, a target previously set in 2023. Reuters, covering the story, suggests that the rumoured move has been caused by external political pressures. While it is likely that climate-focused investments will still be integrated into the World Bank’s development and investment focus to some degree, for many the decision will represent a significant step backwards at a time when the scientific and humanitarian case for such investment has never been stronger.

OECD launches most comprehensive analysis of corporate sustainability practices to date

The OECD Responsible Business Outlook 2026: Making Commitments Count offers the first global assessment of how responsible business conduct is reflected in company practice and supported through public policy. The scale and scope makes it one of the most comprehensive empirical analyses of corporate sustainability practice to date, drawing on publicly disclosed information from the 10,000 largest listed companies globally.  A central focus is companies’ adoption of environmental and social due diligence, the processes by which businesses identify, prevent, mitigate, and address harmful impacts across their operations, supply chains, and other business relationships. The key findings are: 

• 69% of large listed companies have a public commitment related to responsible business conduct
• There is an implementation gap. 45% of companies have policies and management systems for responsible business conduct but less than 20% report identifying and addressing adverse impacts  
• 84% of OECD countries have laws expecting companies to report on or carry out social and environmental due diligence 

The overarching message is that corporate commitments to responsible conduct must translate into concrete, measurable action — not just policy statements.

ICYMI

• According to ESG Today, the European Banking Authority (EBA) is set to publish the finalised draft of the updated Implementing Technical Standards (ITS) which will simplify reporting requirements, reducing ESG risk-related data points by 37% for large institutions.
• The UK government has announced it will operationalise regulations that will tackle illegal deforestation, by prohibiting the use of illegal commodities and establishing commodity-based due diligence reporting frameworks, Responsible Investor reports.