ESG support collapses: only 1.4% in 2024
Global asset managers are withdrawing their backing for ESG factors. In 2024, their support for board decisions aligned with environmental, social, and governance (ESG) goals has sharply declined. Only 1.4% of the 279 ESG-related proposals received majority approval—down from 21% in 2021.
The data comes from ShareAction, an initiative that monitors major investors’ ESG commitments and publishes an annual report on asset managers’ voting records in corporate boardrooms.
U.S. asset managers lead the retreat
The trend is driven by the disengagement of U.S. asset managers, according to the report. BlackRock, Fidelity, State Street, and Vanguard—the four largest asset managers globally—supported just 7% of ESG-related resolutions. Vanguard had the worst record, approving only one out of 279 proposals.
Together, these firms manage $23 trillion in assets. Their collective approval could have reversed 49 votes—nearly one in five.
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Europe takes a different path
On the other side of the Atlantic, the situation is entirely different. European asset managers supported 81% of ESG-related decisions, with more than half backing over 90% of proposals. The report attributes this stark contrast to stricter EU regulations on ESG compliance compared to the more lenient U.S. framework.
Europe also outperforms other sustainability-focused groups. Members of the Net Zero Asset Managers Initiative supported just 64% of climate resolutions, compared to 55% among non-members. Meanwhile, members of Climate Action 100+ backed 75% of ESG resolutions, whereas those who left the initiative only supported 22%.
A troubling shift
Claudia Gray, head of financial sector research at ShareAction, expressed concern: “This is the worst result we’ve seen from asset managers in the six years we’ve tracked their voting performance. It highlights a troubling retreat from ambition at a time when stronger commitments are needed.”