Glass Lewis and Clarity AI agree to merge ESG advisory businesses

NEW YORK, 29 SEPTEMBER 2026 —

The governance and proxy advisory firm Glass Lewis and the artificial intelligence sustainability platform Clarity AI have announced a merger, creating a combined entity that will initially retain both existing names and branding until a new brand strategy is introduced in 2027.

The merger is significant because it consolidates two major segments of the asset management value chain, addressing what the companies describe as a critical gap in the market. By combining their operations, the new entity aims to offer institutional investors a seamless workflow that spans the entire lifecycle of investment, from initial portfolio construction and monitoring to post-investment stewardship, engagement, and voting.

This integration is designed to reduce the fragmentation that investors have historically faced when using separate vendors for data analytics and governance research.

Glass Lewis, founded in 2003, has established itself as a dominant force in the proxy advisory sector. According to the Harvard Law School Forum on Corporate Governance, the firm grew to account for an estimated 42% of the proxy advisory market’s assets under advice by 2021.

Its primary function is to assist investors with their stewardship responsibilities after they have acquired an asset, providing research and voting recommendations that guide how shareholders exercise their voting rights at corporate meetings.

Clarity AI, which launched in 2017, brings a different set of capabilities to the table. The company has particularly strong roots and capabilities in Europe, a region that the merged entities identify as the global center of sustainable investing. Clarity AI’s core business involves helping institutional investors construct, monitor, and report on their portfolios using advanced artificial intelligence and data analytics.

This focus on the pre-investment and ongoing monitoring phases complements Glass Lewis’ post-investment governance focus.

The rationale for the merger is rooted in what the companies describe as a rare alignment of strategic fit, market conditions, and client needs.

In a FAQ section dedicated to the deal, the companies stated that “rarely do business opportunities arise that satisfy three key factors: strategic fit, market conditions and client needs.” They further explained that the opportunity to combine Clarity AI and Glass Lewis meets these criteria because the two firms “have complementary strengths and currently serve two ends of the investment spectrum.”

Bob Mann, CEO of Glass Lewis, emphasized the synergistic nature of the union in a press release.

He stated, “This union brings together two complementary sets of capabilities to support clients across the full decision-making ecosystem, from portfolio construction and monitoring to research, engagement, voting and reporting.” The companies noted that the driving force behind the deal is the increasing demand from clients for more comprehensive data and integrated solutions across the full lifecycle of investment and ownership in an asset or company.

Rebeca Minguela, CEO and founder of Clarity AI, highlighted the technological and expertise-driven benefits of the combination. She said that merging Clarity’s AI, technology, and sustainability capabilities with Glass Lewis’ “depth in governance and stewardship” will allow the combined company to create “a differentiated, integrated platform with deep decision-relevant data and unparalleled expertise.” The goal is to move beyond siloed services toward a unified platform that provides deeper insights for decision-making.

The combined company will operate with a workforce of more than 900 employees across 20 worldwide offices. A key structural element of the new organization will be a global center of excellence for sustainability, data, and AI innovation located in Madrid, Spain. This hub is intended to drive innovation in the areas where the two companies’ strengths converge.

Because both Glass Lewis and Clarity AI are privately held companies, neither entity publicly reports its revenue, meaning the financial scale of the merger is not disclosed in the announcement.

The integration of products will follow a phased approach, with the companies committing to continue supporting existing products from both firms during the transition.

One of the “central objectives” of the new company is to “pair Clarity AI’s scale and data capabilities with Glass Lewis’ domain expertise and quality disciplines so that analytics are increasingly decision-relevant, transparent, and auditable.” This focus on auditability and transparency is a direct response to growing scrutiny of how ESG data is generated and used in investment decisions.

Addressing concerns about the independence of its core services, the companies responded to a specific question about whether Glass Lewis’ research and voting recommendations would remain independent. They stated that they are looking to expand capabilities “while preserving the rigor, transparency and governance required for research and voting services.” This assurance is for maintaining trust among institutional clients who rely on the impartiality of proxy voting recommendations.

Clients of the combined company are expected to benefit from “a more complete view of investment and ownership activities, fewer disconnected workflows and stronger continuity between analysis, engagement, voting and reporting,” according to the release. The merger is positioned as a solution to the operational inefficiencies caused by using multiple vendors for different parts of the investment process, promising a more cohesive experience for asset managers and other institutional investors.

The merger occurs against a backdrop of significant political and regulatory pressure on the proxy advisory industry. Glass Lewis’ substantial market share has made it a target for the Trump administration. Collectively, Glass Lewis and its main competitor, Institutional Shareholder Services (ISS), accounted for 97% of the proxy advisory market by 2024. In a December executive order, President Trump targeted these two firms, labeling them as “foreign and politically-motivated proxy advisors.”

The firms have also been engaged in legal battles against a number of state laws designed to compel specific disclosures from proxy advisors. These state-level initiatives have been ruled unconstitutional in multiple instances, highlighting the ongoing tension between state regulatory ambitions and federal preemption or constitutional limits. The merger may provide the combined entity with greater resources to navigate this complex legal landscape.

The regulatory environment for ESG investing is also undergoing significant changes. Several climate and ESG-related regulations at the Securities and Exchange Commission (SEC) and the Department of Labor are likely to be repealed or altered come January. This potential rollback of federal regulations adds another layer of uncertainty for the industry, making the move toward integrated, data-driven platforms a strategic response to shifting compliance requirements.

State-level regulatory actions are also intensifying, with jurisdictions taking divergent approaches to ESG. Left-leaning states such as California and New York have stepped up regulatory measures to underscore the role of ESG in their jurisdictions, often promoting sustainability disclosures and initiatives. Conversely, conservative-led states like Florida and Texas have enacted measures to limit or prohibit the consideration of ESG factors in state-managed funds and public investments.

This polarization at the state level creates a fragmented regulatory landscape for national and global asset managers. The combined Glass Lewis-Clarity AI platform, with its emphasis on transparent, auditable, and decision-relevant data, is positioned to help clients navigate these conflicting state requirements. The ability to provide data and analytics that can withstand scrutiny from both pro-ESG and anti-ESG regulators is a key value proposition for the new entity.

The merger reflects a broader trend in the financial services industry toward consolidation and the integration of technology with traditional advisory services. As the demand for ESG data grows, so does the need for platforms that can handle the complexity of sustainability metrics alongside traditional governance and financial data.

The combined company aims to be at the forefront of this evolution, leveraging AI and data science to enhance the quality and utility of its advisory services.

The presence of a global center of excellence in Madrid underscores the international nature of the business. Europe remains a critical market for ESG investing, with stringent regulations and high investor awareness. By maintaining a strong presence in this region, the combined company can leverage Clarity AI’s existing strengths while expanding its global reach through Glass Lewis’ established network.

The phased integration approach suggests a cautious strategy to minimize disruption to existing clients. By continuing to support current products, the companies aim to ensure a smooth transition while they work on developing new, integrated solutions. This strategy is likely to be closely watched by competitors and clients alike, as it sets a precedent for how technology and advisory firms can combine in the ESG space.

The announcement of the merger comes at a time when the ESG industry is facing intense scrutiny from both political and regulatory fronts. The ability to demonstrate the rigor and transparency of its data and recommendations will be for the combined company to maintain its credibility. The focus on making analytics “decision-relevant, transparent, and auditable” is a direct response to the criticisms that have been leveled at ESG data in recent years.

As the combined company moves forward with its integration plans, it will need to navigate the complex interplay of market forces, regulatory changes, and political pressures. The merger represents a significant step in the evolution of the proxy advisory and ESG data industries, potentially reshaping the competitive landscape and setting new standards for data quality and integration.

The success of the deal will depend on the company’s ability to deliver on its promise of a more complete and cohesive investment platform.

The reaction from the market and stakeholders will be a key indicator of the merger’s reception. Institutional investors, who are the primary clients of both firms, will be looking for evidence that the combination will indeed lead to better insights and more efficient workflows.

The companies’ emphasis on preserving the independence and rigor of their research and voting services is a critical part of their messaging, aimed at reassuring clients that the merger will not compromise the quality of their advisory services.

In the coming months, the combined company will likely begin the process of integrating its technology platforms and data sets. This technical integration is a complex task that will require significant investment and coordination. The establishment of the Madrid center of excellence will play a central role in this process, driving innovation in AI and data analytics to support the company’s strategic objectives.

The merger also highlights the growing importance of data in the investment process. As investors seek to make more informed decisions, the need for high-quality, comprehensive data becomes increasingly critical. The combined company’s ability to provide such data, across the full lifecycle of investment, positions it as a key player in the evolving ESG landscape. The focus on transparency and auditability is a response to the growing demand for accountability in ESG investing.

The political and regulatory challenges facing the industry are unlikely to abate in the near term. The combined company will need to remain agile and responsive to changes in the regulatory environment, both at the federal and state levels. The ability to adapt to these changes while maintaining the quality and independence of its services will be a key test of the merger’s success.

The announcement of the merger between Glass Lewis and Clarity AI marks a significant development in the ESG and proxy advisory industries. By combining their complementary strengths, the companies aim to create a more integrated and effective platform for institutional investors. The deal reflects the broader trends of consolidation and technological integration in the financial services sector, as well as the growing importance of ESG data in investment decision-making.

The success of the merger will depend on the company’s ability to navigate the complex regulatory and political landscape while delivering on its promise of a more complete and cohesive investment platform.