By Newspot Nigeria Editorial Desk
The intersection of business, politics, and environmental governance saw major developments this week as President Donald Trump moved to tighten federal oversight of proxy advisory firms, the European Union scaled back its flagship climate reporting rules, California released draft climate disclosure regulations, and Apple announced the retirement of its top ESG executive.
Trump Targets Proxy Advisory Firms
President Donald Trump has signed a new executive order directing the U.S. Securities and Exchange Commission to increase scrutiny of proxy advisory firms, specifically Glass Lewis and Institutional Shareholder Services, which together control more than 90% of the global proxy advisory market.
The order instructs the SEC to revisit existing regulations governing proxy advisors, particularly rules related to environmental, social, and governance considerations and diversity, equity, and inclusion factors. It also urges the commission to examine whether proxy advisors’ voting recommendations could trigger anti-fraud provisions under federal securities law, and whether investment advisors relying on non-pecuniary factors may be breaching fiduciary duties.
Additional provisions call for investigations into coordinated voting practices, expanded disclosure requirements on voting methodologies, and a review of whether proxy advisory firms should be classified as registered investment advisers under the Investment Advisers Act of 1940.
While any regulatory changes will still require formal SEC rulemaking, the order sends a clear signal ahead of the 2026 proxy season that the administration intends to curb the influence of proxy advisors in corporate governance.
EU Parliament Scales Back Climate Reporting
In Europe, the European Parliament voted 428-218 to approve legislation significantly scaling back the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. The revised package exempts roughly 90% of companies previously covered by the CSRD and about 70% under the CSDDD.
The amendments raise reporting thresholds, remove certain due diligence obligations, delay implementation timelines for some sectors, limit civil liability exposure, and eliminate mandatory climate transition plans for certain companies. Supporters argue the changes reduce regulatory burden and improve competitiveness, while critics warn the rollback could undermine corporate accountability and increase investor uncertainty.
The legislation must still be approved by the European Council, but the parliamentary vote effectively clears the final major legislative hurdle.
California Releases Draft Climate Disclosure Rules
At the state level, the California Air Resources Board released draft regulations implementing SB 253 and SB 261, the state’s landmark climate disclosure laws. The proposed rules clarify reporting timelines, exemptions, and fee structures, and open a 45-day public comment period.
Under the draft, companies must meet revenue thresholds for two consecutive years before being required to comply. CARB also proposes a flat annual fee for all covered entities, regardless of size or emissions, with the first reporting deadline for Scope 1 and Scope 2 emissions set for August 10, 2026.
The regulations outline permanent exemptions for government entities, certain nonprofits, and businesses engaged solely in wholesale electricity transactions. While SB 253 remains in effect, SB 261 is temporarily paused following a Ninth Circuit injunction as legal challenges continue.
Apple ESG Chief to Retire
Apple announced that Lisa Jackson, its vice president of Environment, Policy and Social Initiatives, will retire next month after more than a decade at the company. Apple confirmed the role will not be directly replaced.
Jackson’s responsibilities will be divided among senior executives, with environmental and social initiatives moving under Chief Operating Officer Sabih Khan, and policy work transitioning to incoming General Counsel Jennifer Newstead, formerly of Meta. The move reflects a broader corporate shift toward integrating ESG responsibilities into core operational leadership rather than standalone roles.
— Newspot Nigeria
