(Tuesday 18th February) Today, new research by ShareAction, the charity campaigning for responsible investment, shows that asset managers’ support for shareholder resolutions aimed at tackling social and environmental issues crashed to a new low in 2024. Only 1.4 per cent (4 out of 279) of the shareholder proposals assessed in Voting Matters 2024 received majority support, down from 21 per cent in 2021.

Asset managers who blocked corporate action by voting against shareholder resolutions to protect human rights, nature and climate included the four largest asset managers in the world – BlackRock, Fidelity Investments, State Street Global Advisors and Vanguard. Together managing US$23 trillion in assets, more than the total GDP of the entire European Union, these firms have an outsized influence through the huge investments they hold in key companies – yet collectively supported just 7 per cent of key shareholder resolutions.

ShareAction's research reveals an additional 48 shareholder resolutions would have passed had these four asset managers chosen to support them. This includes a resolution at Cadbury and Oreo-maker Mondelez International that asked for greater disclosure over the operational and reputational risks associated with the company's continued operations in Russia since the invasion of Ukraine.

Claudia Gray, Head of Financial Sector Research at ShareAction, said: “This is the worst result we've seen from asset managers in the six years we’ve been monitoring their voting performance and shows a worrying retreat from ambition when it’s most needed.

“As support for shareholder resolutions hits rock bottom, our first ever analysis of votes against resolutions proposed by company management paints a similarly bleak and disappointing picture, with asset managers failing to use these votes to hold companies accountable for their social and climate impacts.

“This should be of great concern to asset owners who are putting their faith in asset managers to act in their best interests. If ever we needed asset owners to be the drivers of responsible investment, it’s right now. We need their leadership to hold asset managers to account at such a critical time for people and planet.”

Had asset managers supported them, proposals put forward by shareholders at 190 companies could have improved conditions for low-paid workers struggling to afford the soaring cost of living and driven urgent climate action at a time when the impacts of climate change are devastating lives around the world.

As in previous years, however, there is a striking gulf in performance between asset managers in the US and Europe. Supporting 81 per cent of shareholder proposals on average, UK and European asset managers have once again demonstrated greater commitment to responsible investment than their US counterparts. This is in the context of higher corporate transparency standards set by regulators in Europe. We urge policymakers to safeguard the EU’s enabling regulatory framework, in order to retain and strengthen the ambition, transparency and accountability needed to ensure a sustainable future.

Other key findings from the report include:

• Our first ever analysis of votes on management items found that asset managers are failing to use these votes to express dissatisfaction with companies’ strategic approach to important social and environmental issues.
• European asset managers, who outperform US counterparts on support for shareholder resolutions, could go further by committing to vote against management resolutions at companies that are falling short on social and climate action.
• Ten asset managers, including the four largest in the world, voted against four human rights related resolutions at weapons companies Lockheed Martin, RTX and Northorp Grumman. With support from these asset managers, the resolutions could have achieved transparency for shareholders on the firms’ lobbying activities and human rights impact.
• At a time of intensifying climate crisis, only 2 out of 73 shareholder resolutions on climate change received enough shareholder support to pass.

Gray continued: “We live in a world where asset managers have a huge impact through the companies they invest in. Many claim to be playing their part in tackling important issues like climate change, yet our report calls into question whether the majority of the world's wealth is being managed effectively by investment firms.

"At a time when the climate breakdown is already devastating lives around the world – from prolonged droughts to deadly wildfires – the finance sector should be driving urgent environmental action, not slowing it down. What’s clear is we need better regulation from policymakers and bold leadership and ambition from decision-makers across the financial sector.”

Notes to editors

Vanguard was the worst performing of all the managers we assessed, supporting just one shareholder proposal. The best performing asset manager we assessed was GenAM, which backed 98 per cent of resolutions, although did not vote in line with recommendations on management items in our sample. Second in our ranking was BNP Paribas Asset Management, supporting slightly fewer shareholder resolutions (97 per cent) but performing better on votes against management items.

BlackRock, Fidelity Investments, State Street Global Advisors and Vanguard are the largest asset managers in the world – their combined assets under management represent US$23 trillion.