Highlights

• US investor backing for ESG proposals plummets to just over 10% in 2025.
• European asset managers extend their support for environmental and social resolutions despite US pushback.
• Changes in SEC guidance lead to a 22% drop in proposals and a 40% decline in E&S resolutions.

Investor backing for shareholder proposals fell sharply in the 2025 proxy season.

According to Morningstar, changes in SEC guidance in February 2025 contributed to a 22% drop in proposals and a 40% decline in environmental and social (E&S) resolutions.

Only 30 resolutions received more than 30% backing from shareholders, compared with 107 in 2024, which is a sharp reduction in investor engagement on these issues.

Read More: EU Competitiveness at Risk Amid US ESG Retreat

US asset managers have become wary of ESG topics. Average backing for environmental and social proposals fell from over 30% in 2021 to just over 10% in 2025.

In contrast, support for governance-related proposals stayed above 30%, indicating that investors are more comfortable approving changes to corporate rules than to ESG matters.

Lindsey Stewart of Morningstar noted that this shift has reduced market signals that investors use for long-term sustainability decisions.

The divide between European and US investors is wide. European asset managers gave 91% support to E&S proposals in 2025, remaining consistent with previous years.

By comparison, major US managers, including BlackRock, Vanguard, and J.P. Morgan, averaged 18% support, down from 46% in 2021. This gap shows that European investors remain much more active on ESG issues, while US investors have pulled back significantly.

Climate and Net Zero developments affect investor behaviour. The Net Zero Asset Managers initiative is undergoing revision after US firms, including BlackRock, left the group.

Also Read: Norway’s $1.9 T Wealth Fund Unmoved by Trump’s ESG Stance: Report

Some European pension funds have ended contracts with US managers due to their reduced activity on climate-related stewardship, signalling growing frustration among asset owners with weaker engagement on sustainability matters.

Ends/

Searching for sustainability experts to support your business?

Discover our ESG Marketplace, where you'll find over 750 providers offering a wide range of sustainability and ESG services.

Stay informed with our latest Investor News—bringing you regular updates and insights.

Don’t miss our newest ESG Course updates to build your career in ESG and sustainability.

Source: Net Zero Investor