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30 October 2023 / Quick Take
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Copy LinkSomething remarkable happened in this year’s proxy season: environmental and social shareholder proposals became more likely both to go to a vote and to receive less support at shareholder meetings, compared to 2022. For example, 56% of the 101 climate-related proposals filed in the first half of 2023 came to a shareholder vote and received 21% average support, compared to 43% of 102 climate-related proposals that received 35% support in all of 2022.
Insight for What’s Ahead: If this trend continues, companies may become even less willing to compromise with proponents on environmental issues as we head into the 2024 proxy season. But a word of caution: mainstream investors still supported a new type of proposal requesting companies to disclose their transition plan to achieve their GHG emission reduction targets, which received an average of 31% support this year.
Companies should also be prepared for mainstream investors to provide continued support for shareholder proposals on lobbying in 2024, just as they did in 2023 and 2022. We can expect this trend to continue as we head into a federal election year.
Our latest report—featuring data from analytics firm ESGAUGE and produced with the support of Russell Reynolds Associates and the Rutgers Center for Corporate Law and Governance—provides further guidance on how companies can prepare for the 2024 proxy season.
