Shareholder Proposals and Sustainability An Empirically-Based Critical Reflection

Publicly traded companies face growing scrutiny in respect of their sustainability strategies and policies from regulators, the general public, NGOs, as well as investors. One area where the attention for corporate sustainability issues has materialised is at the general meetings of these companies, including in the form of a growing number of shareholder proposals on environmental and social topics. Against the background of this development, I have investigated sustainability-related shareholder proposals in 25 countries. More specifically, this paper presents the results of a survey of shareholder proposals on environmental and social topics that have been put to a vote in the period between 2020 and 2022, with the aim of exploring what sustainability issues are addressed through shareholder proposals, who submit E&S-related shareholder proposals, and which sectors are subjected to such proposals. During this three-year period, nearly one-third of the 1995 shareholder proposal that have been identified directly related to environmental and social issues. The investigation reveals that the majority of such proposals have been submitted by individuals, organisations with primarily social objectives, and SRI asset managers and investment advisors. But in light of increasing attention, both in society and in investor circles, for what institutional investors are doing to support and promote sustainability strategies and policies of publicly traded companies, in particular when it comes to climate change, it may be the case that (some of) these investors will increasingly exercise agenda-setting rights in connection with corporate sustainability issues.