As the 2024 AGM season unfolds, the impact


of the recent SEC climate rule changes and the institutional investors pulling out of Net-Zero Asset Manager Alliance will likely affect voting on climate- related proposals. Attention to natural capital will likely gain greater


traction this year, with initiatives such as the Taskforce on Nature-Related Financial Risk (TNFD) drawing investor interest. Tangible support for related proposals remains


uncertain, however. Many investors who are refining their own approach and strategies have signalled that they regard engagement in natural capital and biodiversity to be more important than voting action.


Governance-related Proposals Gaining Support During the 2023 AGM season, 44% of proposals (269) that went to a vote were related to governance issues. Support for governance-related proposals stood


at 37.4% as of late March 2024: up from 28.3% in 2023. Tis uptick seems mostly driven by strong backing for proposals on declassifying boards, simple majority votes, and the right to call a special meeting. Notably, anti-ESG proposals related to gover-


nance concerns usually receive a higher average support, hovering around 12% in 2023, compared with single-digit average support of E&S proposals in the same year.


Impact of the Presidential Election and Anti-ESG As with the previous lead-up to a presidential election, political activity proposal submissions, including political lobbying and political contributions, are on the rise this year. Compared to 2023, when there were 84, there are nearly as many such proposals this year (76 as of March 27, 2024) with a few more months before the end of the 2024 season remaining. Te polarization of ESG topics continues to domi-


nate the 2024 AGM season. Disparate stakeholders with opposing ESG views have used the proxy season and the forthcoming presidential election to reflect cultural and political disagreements. Te majority (more than 60% as of March 29, 2024) of anti-ESG proposals relate to social issues, predominantly


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concerning diversity or human rights. In addition to the increasing volume of anti-ESG


proposal submissions, the number of anti-ESG pro- ponents and types of anti-ESG proposals have also risen significantly, from three main proponents in 2022 to 12 in 2023—and at least 10 such proponents to date during this season. We are also increasingly seeing ESG and anti-ESG


proponents filing proposals to the same company on the same issue but from different perspectives, adding a layer of complexity for AGM organizers. The growing politicization of ESG issues has,


therefore, created a new dynamic that requires is- suers to adapt quickly. There may be more negotiated withdrawals this year as companies seek to avoid any perceived increased headline risk during a presidential elec- tion year.


Prominent Topics in 2024 In 2024, a diverse range of topics are expected to take center stage, reflecting the evolving ESG landscape. It is anticipated that last year’s surge in proposals,


which were seemingly largely driven by shareholders’ heightened engagement in the proxy process and the anticipated impact of SEC reforms, will continue. Tis heightened attention from shareholders has also had the effect of ushering in new proponents and removing some barriers to enable more proposals to go to a vote.


Diversity, equity and inclusion (DEI) and human


rights-related proposals remain focal points for the 2024 AGM season, along with three other emerging themes this year: • Health access (encompassing reproductive rights), gender-affirming care and prescription access


• Labor rights, including freedom of association, and workplace health and safety


• Te impact of artificial intelligence (AI) on society and the workforce


One notable trend is how organized labor is


employing various tactics to influence corporate decisionmaking. For example, during the 2024 proxy season, the Strategic Organization Center (SOC) initiated a director fight, while the Carpenters’ Union


niri.org/ irupdate


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