Plans to tackle environmental risks ‘got record-low support from asset managers’
Asset managers’ voting record at shareholder meetings last year signalled a ‘worrying retreat from ambition’, campaigners said.
Proposals aimed at tackling environmental and social risks saw record-low support from asset managers at shareholder meetings last year, according to an analysis.
ShareAction, which campaigns for responsible investment, found that only 1.4% – four of the 279 shareholder resolutions it assessed – received majority support in 2024, down from 21% in 2021.
Resolutions can be put forward by company shareholders, asking the board to take certain actions on issues like corporate governance, environmental and human rights risks, diversity and inclusion, and bosses’ pay.
They are then voted on at a shareholder meeting, usually annual general meetings (AGMs), and while not legally binding, significant support can put pressure on the board to respond to the matters raised.
ShareAction’s annual Voting Matters report, released on Tuesday, found that four of the world’s largest asset managers – BlackRock, Fidelity Investments, State Street Global Advisors and Vanguard – voted against shareholder proposals aimed at protecting human rights, nature and climate last year.
The researchers assessed that an additional 48 shareholder resolutions would have passed had they been backed by these four firms, which have significant clout and together manage tens of trillions of dollars in assets.
A cited example was the lack of support for a resolution asking Cadbury owner Mondelez International’s board to provide greater disclosure over the operational and reputational risks associated with the firm’s continued operations in Russia since the invasion of Ukraine.
