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  • 1.  Stewardship Snapshots

    Posted 12-06-2024 10:28

    In the latest edition of "Stewardship Snapshots" (formerly "Proxy-Voting Insights"), Lindsey Stewart of Morningstar Sustainalytics expands the newsletter's scope to include broader sustainability and governance topics while maintaining a focus on investor-driven proxy voting research. This issue highlights key insights, such as the increasing number of environmental and social (E&S) shareholder resolutions, which have grown by almost a quarter, though the proportion of key resolutions has significantly decreased. This shift reflects asset managers' rejection of resolutions they find overly prescriptive. Additionally, a growing disparity is noted between U.S. and European asset managers' support for ESG resolutions, with U.S. managers showing less support due to political resistance to ESG integration, contrasting with strong European backing.

    The newsletter also addresses several other topics: the independence of asset managers' voting decisions from proxy advisors' recommendations, the varied voting behaviors of Climate Action 100+ signatories following high-profile departures, and the complexities surrounding "say-on-climate" votes. Despite initial high support, say-on-climate votes have seen a decline, and asset managers' decisions often stem from diverse and conflicting rationales, making it challenging to interpret overall shareholder sentiment on companies' climate strategies. This edition aims to provide a deeper understanding of these evolving dynamics in the stewardship and sustainability landscape.

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    Aya Pariy
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