In the ever-fluctuating world of shareholder activism, a notable shift has been observed in the US, where ESG (Environmental, Social, and Governance) shareholder proposals have significantly declined, plummeting by around 40% in the first quarter of 2024 compared to the same period in 2023. This downturn follows a peak year in 2023, according to SquareWell’s STUDY. This trend starkly contrasts with the European scenario, where such resolutions remain a rarity and mostly unsupported by American investors, reflecting a divergent approach to ESG issues on opposite sides of the Atlantic. While US companies are adapting and leaving less room for shareholder attacks, the momentum in Europe is stifled by perceived excessive demands, often failing to gain traction. This growing indifference towards ESG resolutions in the US may signify a strategic pivot towards quality over quantity, while the rise of ‘anti-ESG’ sentiments marks a new era of shareholder engagement.
To delve deeper into these trends and their broader implications, you can read the full article, available behind a paywall, here.
