Congressman Bryan Steil | Official U.S. House headshot
Congressman Bryan Steil | Official U.S. House headshot
Congressmen Bryan Steil (WI-01) and Andy Barr (KY-06) have recently urged the U.S. Treasury Department to scrutinize the acquisition of Institutional Shareholder Services Inc (ISS) by German company, Deutsche Börse. ISS, a leading proxy advisory firm in the U.S. and globally, has consistently utilized its significant influence to encourage American companies to align their greenhouse gas emissions with the 'net zero' objectives of the Paris Agreement.
Deutsche Börse has expressed that its acquisition of ISS is a "logical step in our ESG growth strategy" and would serve to "strengthen" its emphasis "on sustainable investing." Fox Business has underscored Steil and Barr's apprehensions about the acquisition of ISS, as well as their concerns regarding foreign influence being used to advance a green energy agenda in the U.S.
The congressmen highlighted the potential adverse effects proxy advisors could have on workers, economy, and retirement savings when they are used to promote political agendas rather than prioritizing investments.
In a letter excerpted below, they elaborated on their concerns:
“ISS’s net-zero agenda threatens to undermine our nation’s energy independence, make our critical infrastructure dependent on China, weaken our national defense, and jeopardize our food security. These issues implicate national security and warrant review under Section 721 of the Defense Production Act. Accordingly, we request that the Committee on Foreign Investment in the United States (“CFIUS”) conduct a thorough review of ISS’s foreign acquisition and take appropriate remedial action to protect our national security.”
It should be noted that Rep. Steil introduced the Protecting Americans’ Retirement Savings from Politics Act in 2023. The bill was passed shortly after by the House Financial Services Committee. The legislation aims at enhancing shareholder proposal and proxy voting advice processes by prioritizing retirement savings over partisan politics.