ESG activist investing has been on a fascinating journey. Initially, investors built powerful momentum. Several high-profile proxy contests showed companies that they must take ESG seriously. Then, around 2023, momentum slowed. Fewer ESG proxy proposals were put forward, and proxy voting guidelines increasingly veered away from recommending ESG-aligned votes. Now ESG proposals face a new crisis as the SEC attempts to abdicate its role in regulating shareholder proposals.
However, a section of the investor community remains committed to ESG. A recent Survey from Vanguard gives us a snapshot of the community. The survey examined the demographic makeup of shareholders voting for five different proxy policies including Glass Lewis ESG. Key findings related to Glass Lewis ESG voters include:
- “Female fund shareholders selected the Glass Lewis ESG Policy at nearly twice the rate of male fund shareholders (25% versus 15%)
- Preference for the Glass Lewis ESG Policy decreases with age, while preference for the Company Board-Aligned Policy generally rises with age.
- Fund shareholder preference for the Company Board-Aligned Policy and the Egan-Jones Wealth-Focused Policy increases with account balances. In contrast, preference for the Glass Lewis ESG Policy decreases as account balances rise.”
So, on the whole, ESG-aligned investors tend to be younger women with fewer investable assets. This is particularly interesting when we consider that the majority of the investment community at large is older (60% being over 62) and male (66%). This suggests that women favor ESG policies at a disproportionate rate. As for the amount of investable assets, this is likely attributable to age rather than economic success. Americans under 40 make up roughly 50% of the population, yet hold only 6.7% of the nation’s total wealth. The fact that ESG policy voters skew younger may explain why their accounts tend to be smaller.
Total votes for Glass Lewis ESG have decreased from their height of 45% of all policy selections in 2023 to only 12% in 2026. However, the young and motivated sections of the population that continue to vote for these policies suggest that ESG proposals may still have a future.
Our members can learn more about ESG proxy voting here.
