US companies face less pressure for climate and social reforms

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US companies face less pressure for climate and social reforms
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Shareholder support for proxy resolutions on topics including climate change and workforce diversity dropped significantly this spring, analysts said, as tough proposals from activists met with growing political pressure on fund firms' voting.

"Their attorneys and compliance people would be saying, 'let's be a little more cautious this year'," Behar said.State Street Global Advisors' global head of asset stewardship Benjamin Colton said via email that while companies have become more transparent, there have been more of what he called "overly prescriptive proposals."

"These dynamics have led to an overall decline in investor support for environment and social shareholder proposals," Colton said.Both have previously said they vote on a case-by-case basis and noted an increasing number of proposals affect support rates. Average support for resolutions filed by investors opposed to ESG fell to 6% from 9%, such as one from the free-market National Center for Public Policy Research calling for IBMScott Shepard, a director at National Center, said its resolutions still help demonstrate what he called the "partisanship" of top asset managers. Many now realize they need to take into account risks like pushing for decarbonization before new technologies are ready, he added.

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