(Reuters) — Shareholder support for proxy resolutions on topics including climate change and workforce diversity fell significantly this spring, analysts said, as tough proposals from activists faced growing political pressure on mutual fund voting.
Midway through Russell 3000 companies’ shareholder meetings, average support for voted resolutions on environmental issues was 25% through mid-May, compared with 38% for all previous proxy seasons ending June 30, 2022, and 43% for all previous years, according to shareholder engagement Georgeson.
Support for resolutions on social issues has fallen to 20% this year so far, from 26% in 2022 and 33% in 2021, Georgeson said.
“We̵
7;ve seen a dampening effect,” said Georgeson strategist Kilian Moote, as the reduced support often reflected decisions calling for measures that investors felt were too onerous.He declined to discuss specific companies, but his description fit results from major U.S. banks that defeated calls to divest from financing large fossil fuel projects. Meanwhile, compromises with ESG advocates show that managers still care about sustainability issues.
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