The Governance Matters podcast provides listeners with insight into the cutting-edge issues of the day for corporate secretaries, general counsel and all governance professionals. Produced by Corporate Secretary, this monthly podcast will look at how the role of the corporate secretary and the board has evolved over time, as well as how the governance landscape continues to change.In the latest episode of the Governance Matters podcast, As You Sow president and chief counsel Danielle Fugere addresses declining support for ESG-linked proposals and whether that may be due to proponents filing what some asset managers complain are overly prescriptive resolutions that go beyond seeking corporate disclosures.
‘Inevitably, when you have an issue as important as climate change and disclosures are being made but actions aren’t following appropriately, proposals get more prescriptive,’ Fugere tells Corporate Secretary. ‘There are many investors that take positions where they are very uncomfortable with the prescriptiveness and that’s something we need to work through.
‘I also believe anti-ESG had some impact this year, including a well-timed letter from red-state [attorneys general] right before proxy season suggesting that anybody who voted for our proposals would be in violation of antitrust [provisions], which is a very out-there theory but… I think that gave cover to many large asset managers to not vote for our proposals.’
Leading shareholder advocacy group As You Sow has been engaging with companies on climate change since 2013 and also focuses on issues such as ocean...
