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Sustainability Spotlight: Q4 2025 Legal Update on SEC Proxy Advisors

Favicon for www.jdsupra.com JD Supra Securities
Published March 27th, 2026
Detected March 28th, 2026
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Summary

JD Supra's Q4 2025 Sustainability Spotlight highlights the SEC's actions to regulate proxy advisors and state AGs challenging 'greenwashing' by Big Tech. The update also notes litigation concerning electric vehicle rentals.

What changed

This update from JD Supra covers key Environmental, Social, and Governance (ESG) developments from Q4 2025, with a particular focus on the SEC's efforts to rein in proxy advisory firms. It also touches upon state attorneys general actions against 'greenwashing' claims by large technology companies and legal challenges related to electric vehicle rentals.

Compliance officers should note the increasing regulatory scrutiny on ESG disclosures and corporate environmental claims. The SEC's actions against proxy advisors suggest a move towards greater oversight of how investment advice is provided regarding sustainability matters. Companies should review their ESG reporting and marketing materials for accuracy and compliance with evolving regulations and potential litigation risks, particularly concerning climate disclosures and 'greenwashing' allegations.

What to do next

  1. Review SEC actions regarding proxy advisors for impact on corporate governance and shareholder engagement.
  2. Assess ESG disclosures and marketing materials for 'greenwashing' risks, especially concerning climate and EV claims.
  3. Monitor state attorney general actions related to environmental marketing and disclosures.

Source document (simplified)

March 27, 2026

Sustainability Spotlight | Q4 2025

LinkedIn Facebook X Send Embed Welcome to the latest edition of the Sustainability Spotlight, your place to keep up with all the ESG action – federal and state enforcement, shareholder proposals and litigation, California climate disclosure updates, and state attorney general actions.

This edition features the SEC reining in proxy advisors, state AGs challenging Big Tech greenwashing, and plaintiffs questioning electric vehicle rentals.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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Classification

Agency
JD Supra
Published
March 27th, 2026
Instrument
Notice
Legal weight
Non-binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Public companies Investors
Industry sector
5231 Securities & Investments 5239 Asset Management
Activity scope
Proxy Advisory Services ESG Reporting Corporate Governance
Geographic scope
United States US

Taxonomy

Primary area
Corporate Governance
Operational domain
Compliance
Compliance frameworks
Dodd-Frank
Topics
Environmental, Social, and Governance (ESG) Securities Regulation

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