Dissimilarity in Approach: American Corporate Leaders Reduce Commitment towards Climate Change Measures Proposals while European Counterparts Intensify Their Efforts
Headline: Diverging Trends in ESG Voting Activism: US Asset Managers Face Regulatory Constraints, While Europe Remains Committed
In a significant development, a coalition of 26 asset owners, representing some $1.2 trillion in assets, have reaffirmed their commitment to tackling climate change through stewardship alignment. This commitment contrasts sharply with the trend among the world's largest US-based asset managers, who are facing a significant decline in shareholder support and the number of voted ESG and climate resolutions in 2025.
The decline in the US is largely due to new, stricter guidance by the US Securities and Exchange Commission (SEC) allowing companies to exclude many more ESG proposals from proxy ballots. As a result, the number of ESG shareholder resolutions at US companies dropped by about 30-42%, and average support levels for these resolutions have stabilized but remain low, just above 20% overall with environmental and social proposals receiving even lower significant support (around 12-13%).
In contrast, European asset managers and markets display a different dynamic. European companies generally have more insulation from shareholder filings due to local share ownership structures and board authorities to control proposals on AGM agendas. The trend of fewer filed resolutions is even more pronounced in Europe during 2025. For instance, notable activist groups like the Dutch organization Follow This, known for climate resolutions, chose not to file any proposals this year, citing lack of investor support.
Despite the retreat in environmental and social resolution support in the US, governance-related shareholder proposals remain relatively stronger, maintaining about 34% average support with some governance resolutions receiving majority backing. This highlights a shift in shareholder focus toward corporate governance reforms rather than broader ESG demands.
The divergence between US and European asset managers is clear. US asset managers are facing regulatory and political constraints reducing ESG voting activism, while European managers see entrenched structural factors leading to fewer ESG shareholder resolutions and diminished climate activism in 2025.
Notable findings from ShareAction's research indicate that 75% of shareholder proposals put forward last year simply asked for enhanced disclosure, particularly on climate and emissions. Topping the league table of managers were Generali Insurance Asset Management, BNP Paribas, PGGM, and Eurizon. Vanguard, Dimensional, Capital Group, and BlackRock ranked the weakest on ShareAction's league table.
The Net Zero Asset Managers initiative has suspended its activities after Vanguard, BlackRock, and other US managers announced their departure. The coalition's statement outlines escalation mechanisms for poor or misaligned stewardship activity. BNP Paribas Asset Management is working with clients to turn around their portfolios in regards to climate.
The report acknowledges that the picture is blurred by the larger managers who had recently left the alliance and had generally been far less supportive of climate resolutions than their peers. European managers increased their backing of shareholder resolutions to 82%, compared to 19% by US managers in 2024. James Corah, head of Sustainability at UK manager CCLA, reaffirms the manager's commitment to achieve net-zero emissions on listed equities by 2050.
The coalition includes BlackRock's largest UK client Aegon, Australian superannuation fund Ethical Investment, multiple LGPS Pools, and DC master trusts such as The People's Partnership and Nest. Vaishnavi Ravishankar argues that the findings highlight the need for ongoing and robust conversations between asset owners and managers.
The US-based managers collectively manage close to $80 trillion in assets, compared to $34 trillion in Europe and some $15 trillion for the rest of the world. This news underscores the importance of continued dialogue and collaboration between asset owners, managers, and regulators to address climate change and promote sustainable investing practices.
- In the realm of environmental-science and climate-change, European asset managers are displaying a strong commitment, with European managers increasing their backing of shareholder resolutions to 82%, making them more active compared to their US counterparts at 19%.
- While US asset managers face regulatory constraints that have resulted in a significant decline in ESG voting activism and ESG shareholder resolutions, some European managers are taking proactive steps to transition their portfolios, such as BNP Paribas Asset Management working with clients to turn around their portfolios in regards to climate.
- The finance and business world are witnessing diverging trends in ESG investing, with US asset managers encountering challenges in the form of stricter regulations, while European managers continue to show commitment to ESG initiatives, with initiatives like the Net Zero Asset Managers receiving strong support from European managers.
