The Rise of Anti-ESG Shareholder Proposals

These proposals, though few, are increasing and contribute noise to analyses of ESG voting.

• The shareholder proposals and underlying issues we’ve covered have mostly highlighted the advocacy efforts of sustainability-minded investors. The proposals they file at companies have been made in an earnest effort to secure long-term value for investors and other stakeholders, whether one shares the views of the proxies’ authors or not. Recently, though, we’ve seen an increase in what we’ve been calling ‘anti-ESG’ proposals. These are disingenuously submitted proposals, usually by groups that oppose the work of ‘pro-ESG’ investors.

• Issues include ideological diversity of the boards, lobbying, charitable donations, and, more recently, issues around racial justice.

Source: https://www.morningstar.ca/ca/news/220000/the-rise-of-anti-esg-shareholder-proposals.aspx