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SEC’s new ESG guidance leads to brief stewardship engagement pause

ESG graph discussion
Photo: MTStock Studio/Getty Images

SEC guidance suggests detailed beneficial ownership report must be filed by investors seeking to “pressure” companies over ESG.

BlackRock and Vanguard have temporarily withdrawn plans to hold stewardship meetings that include ESG considerations due to recent SEC interpretation on beneficial ownership reporting.

The guidance suggests shareholders might have to file a comprehensive Schedule 13D form if they use pressure to influence ESG outcomes at companies they hold stakes