The Alberta Investment Management Corp. says there has been declining support for shareholder proposals linked to environmental and social factors, while support has increased for governance proposals centred around shareholder rights, according to the investment organization’s latest stewardship report.
It cited increased scrutiny of ESG issues as a factor in the decline and noted the AIMCO has voted on the outcome of 89 anti-ESG proposals so far this year, compared to 23 in 2023.
“In the post-pandemic economic landscape, the costs associated with incorporating ESG initiatives like transitioning to renewable energy sources have come into focus,” said the report. “This has occurred alongside a growing anti-ESG sentiment among some shareholders, largely driven by the politicization of ESG issues.”
Despite the shift away from ESG issues, the report noted biodiversity proposals have increased because of shareholder concerns about the environmental impact of corporate activities. Greenhouse gas emissions targets were the leading shareholder proposal theme for environmental causes.
The AIMCo conducted 112 engagements between July 1, 2023, to June 30, 2024, with its investee companies and external managers, representing a nine per cent increase on a year-over-year basis.
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