Voting: ‘Asset managers turning their backs on people and planet on an unprecedented scale’ | ShareAction

The report, Voting Matters, from ShareAction – the responsible investment charity – found that in 2023 only 3% of assessed resolutions passed, down from 21% in 2021. Of the environmental resolutions assessed, just 3% passed last year compared to 32% in 2021. Asset managers who voted against resolutions to protect the environment included JP Morgan Asset Management, State Street Global Advisers and UK-based Baillie Gifford, who have policies claiming they are working to protect the planet by achieving net zero emissions, leaving them open to claims of hypocrisy and greenwashing.

On social resolutions, the report found a drop in majority support from 15% to 4% in 2023. Among the resolutions that failed to pass due to large asset managers like BlackRock, Vanguard, Fidelity Investments and State Street voting them down, was one asking the owners of high street retailer TK Maxx to report on human rights risks in their supply chain.

 

 

Ranking 69 of the world’s largest asset managers, the report assesses how they voted at AGMs in 2023, and for the first time makes a comparison to the policies and public statements of the asset managers too. It has uncovered a clear distinction between the way European and North American asset managers voted in 2023. As the ranking table shows, European asset managers have a much better record of voting for resolutions protecting the environment, and human and employee rights, than their US counterparts.

Voting Matters reveals the trend toward more responsible voting practices among European asset managers continues unabated. On average, they supported 88% of shareholder proposals on environmental and social issues, signalling a positive trajectory across European countries. In the UK support hovers at around 64% on average, while US asset managers on average only voted for 25%.

UK-based EFG Asset Management, who has performed badly in recent years, has shown it’s possible to improve by jumping up 42 places this year to take the top spot in the rankings.

BlackRock, Fidelity Investments, Vanguard and State Street are known as the ‘big four’ asset managers as they are the largest in the world and therefore have a massive influence on the companies they invest in. Yet average support amongst the big four for environmental resolutions fell from 39% to 14% between 2021 and 2023. Support for social resolutions went down from 29% to 13%. A resolution at Amazon calling for an assessment of its workers’ union rights would have passed had the big four voted in favour, along with 68 other key resolutions.

Claudia Gray, Head of Financial Sector Research said: “This is the worst result we’ve seen from asset managers in recent years. Each day we see the impact of global warming with increased floods, fires and loss of the natural world. At the same time inequality is increasing, with many workers struggling to pay their bills while executives take increasing salaries and bonuses.

“The lack of support for key shareholder resolutions in 2023 is deeply concerning. It is even more worrying that some of the world’s largest asset managers are failing to support climate resolutions despite their public commitments to reduce carbon emissions. The findings from our report really question whether the majority of the world’s wealth is being managed effectively. Many asset managers promote their commitment to responsible investment. For their claims to have any credibility they need to vote in favour of more social and environmental resolutions. We are now seeing the complete opposite of this happening.”

 

Support from the big four continues to fall, with the world’s largest manager BlackRock supporting just 8% of resolutions this year. Dozens of resolutions would have passed if these managers had voted for them, including at Amazon, Apple, The Coca-Cola Company, Dow, Pfizer, and Lockheed Martin (detailed examples in the report).European asset managers supported more proposals than ever in the context of better EU regulations.Many asset managers are risking accusations of greenwashing by not supporting crucial climate resolutions despite having net-zero pledges.Asset Managers who have signed up to Climate Action 100+ with a mandate to protect the environment are at the same time voting down resolutions at AGMs that would improve environmental protections in what can only be described as greenwashing.The world’s leading asset managers are blocking transparency on potential human rights violations by voting against resolutions calling on arms manufacturers to disclose how and where their products are being used. 

 

In this year’s report we found there was some improvement from asset managers, with Santander Asset Management and EFG Asset Management having the largest rise in our rankings, but with others such as American Century Investment Management and Capital Group significantly backsliding from where they were in 2022.

 

Asset manager% point change 2022 – 2023Score 2023Score 2022Santander Asset Management88%92%4%EFG Asset Management42%100%58%Swedbank Robur25%77%52%Eurizon Asset Management24%93%69%Swiss Life Asset Managers21%90%69% 

Asset manager% point change 2022 – 2023Score 2023Score 2022Vontobel-25%62%86%Goldman Sachs Asset Management International-30%5%35%Nuveen-34%25%59%Capital Group-37%8%45%American Century Investment Management-40%14%54% 

RankAsset ManagerCountryOverall scoreEnvironmentalSocialLobbying1EFG Asset ManagementUK100%100%100%100%2Achmea Investment ManagementNetherlands98%100%100%90%2Amundi Asset ManagementFrance98%100%96%100%2Impax Asset Management GroupUK98%100%100%92%2PGGM InvestmentsNetherlands98%96%98%100%7CandriamLuxembourg97%99%98%94%7MNNetherlands97%100%100%84%7Nordea Asset ManagementFinland97%97%99%92%9Man GroupUK96%97%94%100%9BNP Paribas Asset ManagementFrance96%95%97%94%11RobecoNetherlands95%95%95%98%11Aegon Asset ManagementNetherlands95%94%98%91%13Generali Insurance Asset ManagementItaly94%97%88%100%14HSBC Global Asset ManagementUK93%90%95%98%14Eurizon A CapitalItaly93%85%99%100%14Union InvestmentGermany93%89%96%94%17Legal & General Investment ManagementUK92%89%92%100%17Santander Asset ManagementSpain92%95%92%83%19Pictet Asset ManagementSwitzerland91%88%94%93%19Royal London Asset ManagementUK91%90%89%100%21Credit Suisse Asset ManagementSwitzerland90%85%96%94%21Swiss Life Asset ManagersSwitzerland90%92%89%86%23Deka InvestmentGermany88%84%93%86%24APG Asset ManagementNetherlands87%96%76%94%25DWS GroupGermany86%89%77%98%26Allianz Global InvestorsGermany85%83%86%93%27Manulife Investment ManagementCanada84%85%78%93%28SchrodersUK83%84%81%83%28Federated HermesUS83%83%84%78%30UBS Asset ManagementSwitzerland82%82%82%82%31Aviva InvestorsUK81%71%90%85%32SwisscantoSwitzerland79%70%89%79%33Northern Trust Asset ManagementUS77%69%80%93%33Swedbank RoburSweden77%80%72%84%35AXA Investment ManagersFrance75%76%65%95%36SEB Investment ManagementSweden73%58%84%73%37M&G InvestmentsUK71%67%74%73%38Fidelity InternationalUK66%64%62%84%39Coronation Fund ManagersUK64%58%59%86%40Vontobel Asset ManagementSwitzerland62%64%57%69%41abrdnUK61%63%52%79%42Veritas Asset ManagementUK59%67%41%100%43Morgan Stanley Investment ManagementUS58%51%62%65%44Nikko Asset ManagementUK57%52%51%79%45Mondrian Investment PartnersUK56%55%54%67%45Jupiter Asset ManagementUK56%51%54%73%45Liontrust Asset ManagementUK56%35%61%69%48Newton Investment ManagementUK55%52%49%76%48Columbia Threadneedle InvestmentsUS55%50%54%67%50Principal Global InvestorsUS54%49%49%76%51MFS Investment ManagementUS42%36%45%53%51Franklin TempletonUS42%42%42%41%53InvescoUS39%35%37%52%54AllianceBernsteinUS33%16%42%55%54Baillie GiffordUK33%47%30%14%56Ninety OneUK32%38%22%44%57Wellington ManagementUS29%31%26%33%58State Street Global AdvisorsUS23%29%20%16%58J.P. Morgan Asset ManagementUS23%26%11%41%60Janus Henderson InvestorsUK16%23%11%17%60Fidelity InvestmentsUS16%12%21%12%62American Century InvestmentsUK14%16%11%12%63BlackRockUS8%9%8%7%63Capital GroupUS8%8%11%0%65Walter Scott & PartnersUK7%0%12%0%66T. Rowe PriceUS6%9%4%2%67Goldman Sachs Asset ManagementUS5%7%2%5%68VanguardUS3%5%2%2%69Dimensional Fund AdvisorsUS2%4%1%0% 

ShareAction is demanding that asset managers use votes on shareholder resolutions, director re-elections and management-sponsored proposals effectively as part of a clearly defined engagement strategy. Managers should refer to our RISE guidance paper on escalation frameworks for further information.