(Reuters) — Shareholder support for proxy resolutions on topics including climate change and workforce diversity dropped significantly this spring, analysts said, as tough proposals from activists met with growing political pressure on fund companies’ voting.
Halfway through the shareholder annual meetings of Russell 3000 companies, average support for voted resolutions on environmental issues was 25% through mid-May, compared with 38% for all the prior proxy season ended June 30, 2022, and 43% for all of the prior year, according to shareholder engagement company Georgeson.
Support for resolutions on social issues fell to 20% this year so far, from 26% in 2022 and 33% in 2021, Georgeson said.
“We’ve seen a dampening effect,” said Georgeson Strategist Kilian Moote, since the drop in support often reflected resolutions asking for steps investors deemed too burdensome.
He declined to discuss specific companies, but his description fit results at major U.S. banks that defeated calls to wind down financing for major fossil fuel projects. At the same time, compromises with ESG advocates show executives still care about sustainability matters.
