By Ross Kerber
(Reuters) -Support for shareholder resolutions pressing U.S. companies for environmental and social reforms fell to 16% on average for the 12 months ended June 30, half the rate of three years ago, data from Morningstar shows.
Analysts, activists and investors attributed the trend to hostility to climate and diversity matters from U.S. President Donald Trump and other Republicans, coupled with the reforms many companies have already put in place. Top proxy advisers also reduced their support.
Most U.S. shareholder meetings have finished for 2025, and the results show how the pendulum has swung away from progressive corporate causes, albeit while leaving many recent changes in place.
ENVIRONMENTAL AND WORKFORCE REPORTING IMPROVES
Large investors seemed reluctant to support resolutions that might attract questions from customers or political criticism, said Leslie Samuelrich, president of Green Century, a climate-focused asset manager.
Its own resolutions calling for reports on greenhouse gas emissions and biodiversity, for instance, won 13.6% on average this year, against 21% in 2024.
Samuelrich said big investors “don’t want to lose clients, and they don’t want a target on their backs”.
Marc Lindsay, managing partner of shareholder advisory firm Jasper Street, said better company reporting of emissions or workforce diversity was giving executives ammunition to argue against the need for further reforms.
“There are simply less disclosure gaps for activists to attack,” Lindsay said.
Donna Anderson, asset manager T Rowe Price’s global head of corporate governance, said its support for such resolutions was lower than in 2024, when it backed 8% of environmental resolutions and 4% of social proposals.
“The sense that shareholders need to support any of these proposals has waned,” Anderson said.
PROXY ADVISERS BACK OFF
Lindsay’s firm found top proxy advisers Institutional Shareholder Services and Glass Lewis each backed environmental resolutions less often this year, and that ISS backed social resolutions less often. Both have faced pressure from Republicans and business groups.
ISS declined to comment.
Glass Lewis said a reason for its lower support may be that “many U.S. companies now meet baseline environmental expectations, providing shareholders with visibility into how related risks are being managed.”
Industry tracker Morningstar found “anti-ESG” resolutions filed by conservatives to roll back diversity or environmental efforts won only 2.7% support on average, as in recent years.
Tim Schwarzenberger, portfolio manager for filer Inspire Investing, blamed the low rate on lack of support from proxy advisers. But he said companies were often willing to make deals to have the resolutions withdrawn, a trend pro-ESG groups have also found.
The deals help companies avoid controversy, Schwarzenberger said. “They want to avoid any negative PR,” he said.
(Reporting by Ross Kerber; Editing by Kevin Liffey)
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