ESG Shareholder and Management Proposals
The number of submitted environmental and social shareholder proposals continues to rise with growing vote support from institutional investors. Many activists or socially responsible investors (SRIs) use shareholder proposals as a tool to drive company progress on ESG.
There are several avenues a company can take to address an ESG proposal from a shareholder. In many instances, the proponent, or investor who filed the proposal, is open to direct engagement with the company to discuss the topic or ask for the proposal. This provides companies the opportunity to enlight the investor with insight into existing initiatives they have implemented to make progress on the ESG issue at hand, or to discuss their commitment to developing strategies to improve performance around the issue moving forward.
Therefore, enabling management to engage with shareholders for approval of the company’s climate action plan or transition strategy. Understanding your shareholder base and their policies and perspectives on ESG, specifically climate is essential to a successful campaign.
Alliance’s strong relationships with the investment community enables our team to coordinate and prepare you for engagement across your investor base. We provide year-round support, from ESG proposal research, voting data, and review of your company’s response to proposals that have been submitted, to off-season engagement and guidance on strengthening disclosures and developing ESG strategies.