SEC Rebuffs ESG Vote Reporting Rules Challenge Led by Texas

The SEC has pressed a federal appeals court to reject a Texas-led challenge to its 2022 rules boosting disclosures about fund votes on ESG proposals and other matters at company annual meetings.

Texas and three other states with Republican attorneys general petitioned the US Court of Appeals for the Fifth Circuit to toss the regulations in February, saying the Securities and Exchange Commission overstepped its authority. The agency formally disputed the claim for the first time in a brief filed with the court Monday.

The rules require BlackRock Inc., Vanguard Group Inc. and other asset managers to report more ...