Support dwindles for ESG resolutions

ShareAction provided further evidence of falling support for environmental and social focused shareholder resolutions. The responsible investment charity’s fifth annual analysis of asset managers’ voting behaviours found of the resolutions examined only 3% passed down from 21% in 2021.

Their report, Voting Matters 2023, highlights differences between fund managers and states that the four largest passive managers were “among the most culpable” of the “backsliding”. The report also highlights some CA100+ members repeatedly voting against resolutions CA100+ has flagged.

This downward trend certainly mirrors PIRC’s analysis of support for shareholder resolutions. Our research has shown support falling back in both 2022 and 2023 across environmental, social and governance issues. Whether this trend continues in 2024 will in part depend on asset owners’ scrutiny of their managers voting behaviours and their greater empowerment via pass through voting.