Courtesy of Proxy Analytics, the bar chart below depicts the reduced level of support for ESG shareholder proposals overall, and for environmental and social proposals specifically, voted during the 2024 proxy season July 1, 2023 – June 30, 2024, compared to the prior four seasons. This is the case even taking into account the impact of anti-ESG proposals and management-supported (or management-neutral) proposals, which are estimated to have reduced overall support by 3%.
Compared to 2023, ESG shareholder proposal submissions (including anti-ESG proposals) increased, while the number of environmental and social shareholder proposal submissions specifically showed a modest decline, with Diversity and Human Capital and Environmental and Natural Capital proposal submissions dropping significantly.
In-house members may contact Randi Morrison for a more comprehensive overview.
Morningstar’s analysis of ESG shareholder proposals voted during the 2024 proxy season ended June 30 documents the rise in anti-ESG proposals submitted and voted and the ongoing (but modest year-over-year) decline in shareholder support for conventional (i.e., non anti-ESG) environmental and social proposals generally, and anti-ESG proposals specifically, as compared to recent seasons, as shown here:
In contrast, support for a reduced number of conventional governance-related shareholder proposals voted increased season-over-season from 30% in 2023 to 35% this season, while support for anti-ESG governance proposals declined:
While support for conventional governance proposals was high this season, it still represents a decline as compared to the 2021 season’s 5-year peak of 37%.
See also Morningstar’s “The 2024 Proxy Season: Which ESG Proposals Made the Podium?” and stay tuned for a more detailed report on support by institutional investors of “key” ESG shareholder proposals (i.e., proposals garnering more than 40% support from independent (non-insider) shareholders) in the 2024 season.