Artificial intelligence proposals are gaining traction among investors, despite a broader decline in environmental, social and governance (ESG) support at annual meetings. According to recent trends, anti-ESG proposals have increased in volume but struggle to gain significant backing, consistently receiving low support.
In contrast, AI-related proposals have gained attention, with 12 submissions recorded in 2024, including votes at major companies like Apple and Microsoft. This shift in investor interest reflects the growing importance of AI in the business world.
Meanwhile, support for ESG proposals has hit a record low, with only 1.4% of 279 environmental, social and governance resolutions securing majority support in 2024. Investors are reassessing their approach to ESG topics due to growing concerns over backlash and scrutiny surrounding ESG investing.
Some investors, like BlackRock and Vanguard, have reduced support for ESG proposals, citing lack of financial materiality or overly prescriptive requests. However, certain companies have reaffirmed their commitment to ESG initiatives, with Disney shareholders rejecting an anti-DEI proposal with 99% voting against it, and Costco's board defending its DEI efforts against an anti-ESG proposal.
The trend suggests that while ESG support may be waning, AI-related proposals are gaining momentum among investors, reflecting the evolving priorities and interests of the business community.
