ESG shareholder proposals still strong
Here’s the intro from this WSJ article entitled “Companies Face Another Packed Year of Sustainability Shareholder Votes”:
U.S. companies are facing fewer shareholder proposals on social issues this year but more calls for climate action. Anti-ESG ones are increasing, too.
For annual general meetings taking place in the first six months of the year, shareholders across all U.S. publicly traded companies filed a total of 538 proposals related to environmental, social and sustainability governance issues, according to the Sustainable Investments Institute, a Washington-based nonprofit that tracks such votes. Last year, there were 577 filings over the same period.
Proposals focused on social issues were again the most popular this year, mentioned in 338 of the filings, down more than 9% from 373 last year. Environmental issues were at the heart of 162 proposals, up slightly from 2022’s comparable tally of 155. Included in the grand total were 48 so-called anti-ESG proposals focused on the risk of ESG-promoting policies, up from 27 in the same period last year.
Historically proposals sought more transparency, better disclosure or asked for companies to set goals, said Peter Reali, managing director and member of the sustainable investments team at fund manager Nuveen LLC. Now, many are calling for a change in behavior or impact, he said.