Bloomberg reported last week that conservative shareholder proposals are gaining ground, and environmental, social, and governance (ESG) policies are on the ropes:
Conservative think tanks, bolstered by political success, are getting more active in shareholder campaigns as fewer social justice and environment proposals land in front of companies…
The shareholder proposal process is a potent and growing vehicle for right-leaning groups looking to highlight their issues in the media and in board rooms. Their emergence as a player in the corporate annual meeting space is borne out by some recent numbers, which show anti-ESG groups gaining on the progressive organizations that have long dominated the space…
“For years really, most shareholder proposals were brought by left-wing proponents, which means corporate America more broadly was really only hearing one side of these issues,” said Luke Perlot, associate director of the National Legal and Policy Center’s Corporate Integrity Project. “By providing the other side of the issue, we also give companies an off-ramp.”
Perlot added:
“The post-George Floyd racial reckoning really brought these radical left-wing policies into the mainstream,” Perlot said.
A few big wins for progressive corporate activism also rattled conservatives—particularly investor Engine No. 1’s successful campaign to elect new renewable energy-friendly board members to ExxonMobil Corp. in 2021, Perlot said…
“Most of the companies that we’re shareholders in have significantly walked back their DEI programs,” and lingerers will struggle to justify keeping initiatives, Perlot said.
Conservatives are wielding real influence. NLPC recently negotiated with Pepsi to remove DEI incentives for its executives, and our shareholder proposal at Mastercard pressured the company to drop similar compensation considerations. Bloomberg’s report adds to the mounting evidence that conservative shareholder activism has made a significant difference, despite shareholder vote outcomes that fall short of majority approval.
