· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Support from asset managers for shareholder resolutions on climate, human rights, and diversity issues has significantly declined
• In 2024, only 1.4% of such resolutions passed, a sharp drop from over 20% in 2021, according to ShareAction
• The shift coincides with growing political pressure in the U.S. and corporate pullbacks on environmental and social initiatives
🔭 The context: Major asset managers like BlackRock (see sustainability performance), Vanguard, and State Street have reduced their support for climate and social resolutions, backing only 7% of selected proposals last year
• Many large financial firms have also withdrawn from climate alliances like the Net Zero Asset Managers initiative (NZAMi) due to political scrutiny
• Meanwhile, the SEC has made it easier for companies to block activist shareholder proposals on social and environmental issues
🌍 Why it matters for the planet: The decline in investor support weakens efforts to hold corporations accountable for their environmental and social impact
• With fewer shareholder-backed climate and DEI initiatives, companies may face less pressure to align with sustainability goals
• A continued rollback on ESG commitments could slow progress toward a net-zero transition
⏭️ What's next: Institutional investors representing $1.5 trillion in assets are pushing back, calling for asset managers to uphold their fiduciary duty and integrate climate action into investments
• European asset managers continue to support ESG resolutions more than their U.S. counterparts, but regulatory changes in Europe could alter this trend
• The long-term impact of political and regulatory shifts on sustainable investing remains uncertain
💬 One quote: “This concerning downward trend represents a continued failure of the asset management industry to exercise its shareholder voting power to hold some of the world’s largest companies to account on their environmental and social impacts.” – ShareAction report
📈 One stat: In 2024, only 1.4% of 279 climate, human rights, and diversity-related shareholder resolutions passed, down from over 20% in 2021
See detailed sustainability performances of BlackRock, Vanguard, and State Street
Click for more news covering the latest on sustainable finance
