Proponents have filed at least 429 shareholder resolutions on environmental, social and sustainable governance issues for the 2020 proxy season, up from 366 filed at this time in 2019. A total of 322 were pending as of February 21. Securities and Exchange Commission (SEC) staff have allowed the omission of 26 proposals so far in the face of company challenges; companies have lodged objections to at least 63 more that have yet to be decided. Proponents have already withdrawn slightly more proposals than they had last year at this time-78, compared with 71 in mid-February 2019 and 62 in 2018. Withdrawals generally indicate that the proponents and management have reached an agreement.
Annual totals are down from an all-time high of just under 500 in 2017 and about 460 in each of the subsequent two years. The proportion of resolutions going to votes has fallen in each of the last two years, only 187 in 2019 (41 percent of the total), while the proportion of withdrawals has risen (44 percent of the total in 2019). Companies omitted just 12 percent in 2019 (56 proposals) after successful SEC challenges, down from a high of 77 three years earlier.
Corporate political activity makes up the largest single category (18 percent), while those on the environment (mostly on climate change) account for another 21 percent. Roughly even slices of 9 percent to 13 percent come from those about board diversity and oversight, decent work, human rights and sustainability. About 7 percent relate to diversity in the workplace, 5 percent are from conservatives and the remaining 3 percent concern other issues.
