Proxy adviser Glass Lewis merges with Clarity AI to expand in Europe

Proxy adviser Glass Lewis has combined with Clarity AI, which sells sustainability data and AI analytics. The two firms announced the deal on Thursday. The deal closed on 23 September, and no financial details were disclosed.

The combined company will make Madrid its global centre for sustainability, data and AI work. It has more than 900 staff in 20 offices, including a new office in Amsterdam, according to the joint statement.

“The fact that we are designating Madrid our global centre of excellence for sustainability, data and AI innovation speaks volumes about the strategic importance of the European market and our commitment to it,” said Bob Mann, chief executive of Glass Lewis.

What each side brings

Glass Lewis, founded in 2003 and based in San Francisco, advises investors on how to vote at shareholder meetings. It says it serves more than 1,300 investment managers and pension funds. Clarity AI, founded in 2017 by chief executive Rebeca Minguela, sells sustainability data and AI analytics to financial institutions. The firms said it is moving towards authorisation under the EU’s ESG Ratings Regulation.

That law has applied since 2 July 2026. ESG rating providers now need authorisation from ESMA, the EU’s markets regulator, to operate in the EU. Providers already active in the EU have until 2 November 2026 to apply.

The merged platform will link investment analysis, sustainability, governance, engagement and voting, the companies said. Investors now often handle these in separate systems. Glass Lewis is stronger in the US, and most of Clarity AI’s clients are in Europe, according to the deal’s FAQ. Both firms report client renewal rates above 90%.

Minguela said Glass Lewis brings depth in governance and stewardship. That includes key members of the former Sustainalytics team, she said.

“Combined with Clarity AI’s technology, AI capabilities, comprehensive sustainability data and sophisticated analytics, this creates a differentiated, integrated platform with deep decision-relevant data and unparalleled expertise,” Minguela said.

Why Europe

Europe holds more than 80% of the world’s sustainable fund assets, the companies said. It is still attracting net inflows in 2026.

In the US, proxy advisers face growing pressure. In December 2025, President Donald Trump signed an executive order that names Glass Lewis and its rival ISS. It tells the SEC to review its rules for proxy advisers. It also asks the FTC to check whether they break competition law.

Glass Lewis said in October 2025 that it will stop issuing its standard benchmark voting recommendations in 2027. It plans to offer voting policies built around each client instead. In January, JPMorgan’s asset and wealth management arm dropped external proxy advisers for its US votes. It now uses an in-house AI tool, Proxy IQ, ESG Dive reported, citing The Wall Street Journal.

Other AI companies are also selling to the investment industry. Anthropic has built a Claude tool for advisers, and HSBC Asset Management has invested in AI startup Model ML. Spain is also drawing AI infrastructure money, including a $1bn data centre deal.

The firms said existing Glass Lewis and Clarity AI products will continue, with a phased integration. They also said Glass Lewis’ research and voting recommendations will keep the controls needed to stay independent.