ESG Proxy engagement has been on the decline for several years. Recent years have seen a decline in both the number of proposals put forward and the level of support for those proposals. As we near the end of proxy season, new data is coming out showing that these trends are ongoing. However, while E&S proposals are down, governance proposals are up. Last month, Glass Lewis published mid-season proxy observations, noting:
“In 2024, 33% of ESG shareholder proposals covered governance topics. That figure increased to 41% in 2025, and appears set to increase further this year. Through April 2026, more than half (54%) of the proposals going to a vote have been governance-related.
The complementary decline in the proportion of proposals covering E&S topics was exacerbated by a significant absolute drop in the number of social proposals, with only 37 so far in 2026 compared to 57 over the same period in 2025. Looking at sub-topics, this decline has been fairly consistent across the board.”
While the SEC’s no-action stance is impacting the number of proposals advanced by shareholders, the report notes that it is also resulting in higher volumes of litigation. Without the SEC’s input, proponents are taking to the courts to resolve proxy exclusions. This is leading to more settlements on proposals that may have otherwise been excluded.
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