ESG Proposals

Despite 80% increase in proposals submitted in annual shareholder meetings over last decade, environmental & social factors comprise only 7%. Disturbingly, many important issues never or rarely make the annual shareholder meetings: over the last five years, for example, plastic issues have been raised only eight times and the word ‘biodiversity’ has only once made the agenda. Despite a rising trend in ESG proposals over the last decade, the vast majority of proposals submitted and votes cast were for governance-related topics, and many of these to ensure compliance – such as approving minutes and auditors. While the public statements of the investment giants, including State Street, UBS, Vanguard and BlackRock, make them appear committed to responsible ownership and stewardship, these top asset managers often struggle to present a unified approach, voting very differently by region.