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25 February 2025 | Press Release
As the US policy landscape undergoes tectonic shifts, the effects are manifesting in the 2025 proxy season. That’s especially true considering the scrutiny facing DEI and ESG.
A new analysis reveals that the number of anti-ESG proposals more than quadrupled in the Russell 3000 (from 23 in 2021 to 112 in 2024) and the number of anti-DEI proposals also surged (from 1 to 13). What’s more, this trend is expected to further intensify in 2025—and is supported by early data from this proxy season: As of February, a fifth of all shareholder proposals submitted (20%) were filed by anti-ESG groups. That’s a five-percentage point increase compared to the same timeframe last year.
“Companies are facing an increasingly complex landscape this proxy season, with starkly diverging views on ESG and DEI at the forefront. Firms should prepare to navigate the balance between implementing ESG and DEI initiatives while addressing investor concerns about potential legal and financial risks,” said Ariane Marchis-Mouren, Senior Researcher at The Conference Board and author of the report.
These insights come from a new report by The Conference Board, ESGAUGE, Russell Reynolds Associates, and The Rutgers Center for Corporate Governance. Findings are based on shareholder proposals submitted at Russell 3000 companies, with data as recent as February 12, 2025. Additional insights include:
With DEI under fire, shareholder proposals have surged—and will likely remain elevated.
Companies should brace for more anti-ESG proposals in 2025, as the topic remains highly politicized.
Environmental and climate proposals are losing momentum.
Investor focus is shifting away from E&S issues toward governance topics—such as executive pay.
Shareholder activism campaigns are set to surge, despite dwindling support.
The volume of proposals may drop in 2025—but this could reflect a deliberate shift in strategy by activists.
After years of steady decline, average support shows an uptick in the early 2025 proxy season.
“Recent and proposed regulatory changes may cause dramatic shifts to the corporate governance ecosystem. While companies should not ignore those changes, they also should not overreact to them. Boards should remember that good governance and clear disclosure are timeless,” said Richard Fields, Head of the Board Effectiveness Practice at Russell Reynolds Associates.
“The 2025 proxy season will likely see sustained shareholder activism and evolving priorities in environmental and social proposals. Businesses should continue to monitor policy updates and ensure compliance with regulatory requirements to navigate this dynamic landscape effectively,” said Matteo Gatti, Professor of Law at Rutgers Law School.
“With ‘proposal fatigue’ growing among institutional investors, companies can strengthen investor support by providing detailed cost-benefit analyses of shareholder proposals. They can do this by presenting more information in the proxy statements on the costs, unintended consequences, and limited benefits of implementing shareholder proposals,” said Umesh Chandra Tiwari, Executive Director of ESGAUGE.