For the first time in six years, no environmental shareholder proposals received majority support during the 2025 U.S. proxy season. Data compiled by the Conference Board and Esgauge, reported by the Financial Times, indicates that both the number of environmental proposals filed and the level of shareholder support for them declined significantly this year.
Environmental proposals reached their peak in 2022, when fourteen measures passed across the Russell 3000 index. That figure dropped to two in 2024 and fell to zero in 2025. Filings also declined, with 110 environmental proposals submitted this year compared to 149 in 2024. Average shareholder support fell to 10%, down from 18% the previous year.
Political and legal developments have played a visible role in shaping these outcomes. The administration has emphasized opposition to certain diversity related initiatives, which appears to have influenced shareholder voting trends. Support for human capital management proposals, encompassing social measures such as workplace diversity, decreased from 15% in 2024 to 9% in 2025. At the same time, several Republican-led states have pursued litigation against major asset managers over their net-zero commitments. Proxy advisers Institutional Shareholder Services and Glass Lewis have also faced legislative restrictions in Texas limiting their shareholder guidance. Both firms have challenged those restrictions in court. According to Jasper Street data, ISS did not support any environmental proposals this year.
Investor caution appears to be another contributing factor. Some observers note that political scrutiny has created reluctance among investors to publicly support ESG measures, while expanded corporate disclosure on climate-related metrics has reduced the perceived need for additional shareholder action.
The 2025 proxy season reflects a notable departure from the levels of shareholder backing seen earlier in the decade. Whether this represents a temporary response to the current environment, or a longer-term recalibration of investor priorities, remains to be seen.
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