Europe and the US Are Split on Sustainability

Gavin Hinks from Board Agenda wrote a piece titled “Europe and the US are Split on Sustainability.” The article references research from SquareWell Partners examining shareholder voting trends on sustainability-related proposals at annual general meetings (AGMs).

The analysis highlights a growing divergence between Europe and the United States when it comes to shareholder support for sustainability initiatives. Among the ten large asset managers analyzed, European investors supported 48% of sustainability-related proposals in H1 2025 on average, compared with just 2% for US investors. While widely known, this divergence is quite stark.

The data also shows a decline in the number of sustainability-related shareholder proposals in the U.S., with S&P 500 companies receiving 29% fewer proposals in the first half of 2025 compared to the same period the previous year. While support levels have decreased, investors continue to raise sustainability concerns through alternative voting mechanisms, including director elections, executive compensation votes, financial statements, and auditor appointments. In Europe, companies in markets such as France and the United Kingdom continue to lead on say-on-climate proposals, although the number of such votes has stabilized following a peak in 2022.

These developments reflect a broader regulatory and political divergence: Europe continues to advance sustainability reporting and due diligence requirements, while the United States has seen increased political scrutiny around ESG-related initiatives. Despite these differences, sustainability remains a strategic priority for many companies and investors globally. The evolving nature of shareholder engagement suggests that, even as support for formal proposals fluctuates, sustainability considerations continue to influence voting behavior and corporate governance discussions.

You can read the full Board Agenda article here.