On May 20, 2026, the attorneys general of Iowa, Nebraska, Texas, and West Virginia each filed a lawsuit in state trial courts against the proxy adviser Institutional Shareholder Services, Inc. (ISS) alleging that ISS violated state deceptive trade practice and consumer protection laws by failing to disclose how environmental, social, and governance (ESG) considerations affected ISS’s advice to its shareholder clients. Florida previously filed a <a href="https://www.climatecasechart.com/collections/office-of-the-attorney-general-v-institutional-shareholder-services-inc_657f">similar suit</a> against ISS and Glass, Lewis & Co. LLC. West Virginia asserted violations of the West Virginia Consumer Credit and Protection Act. The complaint alleged that ISS “misrepresented its commercial services by claiming to provide objective, financially-driven analysis while actually subordinating client financial interests to undisclosed, non-pecuniary objectives and third-party commitments.” The alleged non-pecuniary criteria and considerations included adoption of climate change-related policies and inclusion of reports grading companies on management of greenhouse gas emissions. The complaint alleged that ISS failed to disclose the role of third-party inputs in its advice and also failed to disclose conflicts of interest created by its maintenance of a consulting service. The complaint sought declaratory and injunctive relief; civil penalties; restitution, disgorgement, or other equitable relief; and costs, fees, and expenses.

Action brought by West Virginia Attorney General asserting that the proxy adviser Institutional Shareholder Services, Inc. violated state consumer protection law by failing to disclose how ESG considerations affected advice to shareholder clients.

State of West Virginia ex rel. McCuskey v. Institutional Shareholder Services, Inc.

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Four States, Including West Virginia, Filed Suits Asserting that Proxy Adviser’s ESG-Related Actions Violated State Consumer Protection and Deceptive Trade Practice Laws

Filed

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A target to reduce the prevalence of a greenhouse gas over a specific time frame

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Either money or something of monetary value is transferred between two or more organisations, people or countries.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

People whose health, both mental and physical, makes them more vulnerable to the effects of climate change

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Four States, Including West Virginia, Filed Suits Asserting that Proxy Adviser’s ESG-Related Actions Violated State Consumer Protection and Deceptive Trade Practice Laws

Target

Impacted group

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance