Elections have consequences, including on the behaviors of key investor groups

Policy updates from the proxy advisors portend little change

The number of high-profile activism campaigns continues to creep up, with continued focus on M&A and changes in leadership

The future promises regulatory whiplash and inconsistent reporting requirements across the globe

“Off-season” engagement is ramping up, with several key themes already emerging

ESG activists’ activity level remains strong, despite a weakening of mainstream support

It’s ‘open season’ for hedge fund activists, with a range of targets, including large cap CEO’s

Proposed regulatory actions could reshape the shareholder landscape for many companies

Data on investors’ 2024 voting is now available … and provides some interesting lessons

The California climate disclosure law is final (at least, until the courts weigh in)

Greenwashing claims, hedge fund activism, and more!

Proxy voting by the “Big Two” in 2024 reflects continued pullback on E&S issues, but also a retrenchment 
around the G

ESG activism activity remains robust, regardless of mainstream investors’ ESG pullback

Likewise, expect significant hedge fund activism in the coming year  

ISS and Glass Lewis solicit feedback amidst a shifting proxy voting landscape

While “anti-ESG” activists have had little success with shareholder proposals, they have scored some wins this 
year using different tactics

Investor approaches to environmental and social risks continue to diverge, driving sharp division within 
investor-led climate initiatives

While federal policymaking is effectively frozen, state-level and standard-setter activity continues apace

Director support held steady, showing a slight increase from 2023 support levels

Support for Say-on-Pay also notched higher, aided by a (slightly) friendlier ISS

Support for E&S-related shareholder proposals was low, similar to 2023; however, G-related proposals continue to attract meaningful shareholder support

Ongoing legal developments will impact how companies address not only sustainability reporting, but also sustainability strategy

Director support continues to track similar to 2023

ISS remains more supportive of Say-on-Pay than in 2023, driving higher average support

Voting on shareholder proposals remains generally similar to 2023, although with increased support for governance-related proposals

Ongoing legal developments continue to affect how companies should think about shareholder proposals, director succession, sustainability reporting and other topics

Director support similar to 2023, thus far

To-date, ISS more supportive of Say-on-Pay

Voting on shareholder proposals similar to 2023, but

ESG laggards must still beware

Policy developments leave companies with significant uncertainty and increased burdens

The SEC’s final climate disclosure rules were released, but now face a long adventure in the courts –  
and, even if implemented, will simply be the disclosure ‘floor’ for many companies

Mainstream investors’ 2024 voting policies continue to suggest more ‘ESG pragmatism’ …

… but ESG activists show little signs of moderating their own efforts

Significant withdrawals from Climate Action 100+ reflect a deepening ESG divide among investors

Early indicators point to another flood of shareholder proposals, across a range of ESG topics

E&S issues are front & center in two high-profile proxy contests

Recent legal developments suggest even more scrutiny of companies’ ESG claims, even as mandated disclosure requirements are challenged in the courts

“ESG” the acronym is out, but most investors continue to believe that companies with strong governance and sound management of environmental and social issues are better investments.

Investors’ 2024 proxy voting policy updates confirm this: shifts in framing and tone, but few changes in priorities 
and substance.

ISS held the line on policy in 2024, but their FAQs hint at subtle changes in how they’ll execute the policy.

Tension within and around the shareholder proposal process is escalating.