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Advocacy & Impact – Q1 2024

Written by First Affirmative

Shareholder Advocacy

By Kaitlyn Mitchell

Coming Soon: Proxy Season 2024

In March, As You Sow published their highly anticipated 2024 Proxy Preview, offering an extensive overview of what lies ahead in the upcoming proxy season. This comprehensive report delves into the latest trends and developments in shareholder activism and corporate governance, providing invaluable insights for investors, advocates, and corporate leaders alike. As we navigate the complexities of the modern business landscape, understanding the key themes and emerging issues outlined in the Proxy Preview becomes essential for informed decision-making and effective engagement.

  • Shareholder Resolutions: Proponents have filed 527 resolutions on ESG issues, nearly matching last year’s numbers. Despite declining support levels in recent years, proposals favoring corporate responsibility still outnumber anti-ESG efforts significantly.
  • SEC Policy Shift: The SEC’s policy shift in late 2021 led to fewer omitted proposals, but challenges to exclude proposals have surged back to previous levels in 2024.
  • 2024 Trends: Key shifts include increased inquiries into AI usage and biodiversity protection. Environmental issues remain prominent, while reproductive rights proposals have decreased.
  • Regulatory Update: The SEC’s climate disclosure rule disappointed shareholders, and further amendments to shareholder proposal rules are stalled. Litigation, including cases challenging the legitimacy of shareholder proposals, continues.

View the Full Advocacy and Impact Commentary by Clicking Here.