Proxy Season: Human Capital, Environmental, and Social Proposals Decline by 30%

Human capital, environmental, and social shareholder proposal filings declined sharply during the 2026 proxy season. This marks a continued two-year retreat:

• Compared to 2025, proposal filings fell 37% for human capital, 33% for social, and 32% for environmental proposals.
• Compared to 2024, proposal filings declined by nearly 60% for human capital, 50% for environmental, and 47% for social proposals.

Governance proposals were the exception. They rose 19% compared to 2025 and accounted for nearly half of all shareholder proposals. They also continued to receive the highest average support (33%).

“Companies shouldn't interpret fewer proposals as evidence that these issues have fallen off investors' agendas. Instead, investors are placing greater emphasis on proposals that are company-specific, financially material, and clearly connected to long-term value,” said Ariane Marchis-Mouren, author of the report and Senior Researcher at The Conference Board.

These findings come from a new report by The Conference Board, in collaboration with ESGAUGE, Russell Reynolds Associates, and the Rutgers Center for Corporate Law and Governance. The analysis draws on public disclosure data from Russell 3000 companies through June 30, 2026.

ESG and DEI Proposals

E&S proposal filings continue declining…

• Environmental proposals fell by 32% since 2025.
• Social proposals fell by 33%.
• Over the last two years, environmental and social proposals declined by 50% and 47%, respectively.

DEI and HCM proposals plummet.

• Human capital proposals fell by 37% since 2025.

• Average support dropped from 9% in 2025 to 6% in 2026, although specific proposals on worker rights and EEO-1 disclosure garnered stronger support.
• Over the last two years, human capital proposals fell by 60%.

Governance proposal filings rise—and approximately 70% came from a single proponent.

• Governance proposals were the exception, rising 19% from 2025 and accounting for nearly half of all shareholder proposals.
• They also received the highest average support (33%), albeit lower than in previous years.
• Over the last two years, governance proposals grew by 18%.

"Governance proposals continued to stand out in a lower-volume proxy season. Investors remain focused on board accountability, making proactive engagement on governance issues increasingly important," said Matteo Gatti, Professor of Law at Rutgers Law School.

Overall Shareholder Proposals

Shareholder proposal filings continued to retreat from 2024's record highs.

• Shareholder proposal filings fell 20% from 2025 and 33% from their 2024 peak.
• The number of shareholder proposals passed dropped by 45% from 2025.
• Average support remained relatively stable at 24%, compared with 23% in 2025.

"The proxy season continues to evolve as investors become more selective in the proposals they support. Companies that engage shareholders early and clearly explain their governance decisions will be better positioned going forward," said Richard Fields, Head of the Board Effectiveness Practice at Russell Reynolds Associates.

Shareholder Activism

Shareholder activists launched fewer campaigns. Proxy contests accounted for a larger share.

• Shareholder activism campaigns fell by more than 60% from 2025—and nearly 75% from 2024.
• Proxy contests fell only 22%, while their share of all campaigns rose 20 percentage points.
  • Lower formal campaign volume should not be interpreted as reduced activist pressure. Activists can also exert influence through private engagement, negotiated settlements, transaction-focused demands, and other interventions that never become public campaigns.

Artificial Intelligence

AI proposals continue increasing but remain rare.

• AI-related proposals increased from 18 in 2025 to 24 in 2026, reaching a three-year high.
• Investors showed the strongest support for proposals tied to AI's operational impacts—such as energy use, water demand, and data governance—rather than broad AI governance frameworks.

"AI remains a small part of the proxy landscape, but investor expectations are evolving quickly. Shareholders are paying less attention to broad governance frameworks and more attention to AI's real-world impacts—from data governance to energy use,” said Umesh Chandra Tiwari, Executive Director of ESGAUGE.

Context: Following the SEC’s procedural change under Rule 14a-8, exclusion requests fell nearly 50% in the Russell 3000. An exclusion request or notice states a company’s basis for omitting a shareholder proposal from its proxy ballot.