Public pensions are significantly more progressive when it comes to supporting shareholder resolutions for ESG-themed funds, according to analysis by Morningstar.
Last year, there was a record 34% support for ESG resolutions at U.S. public companies. Public pensions voted in favor of ESG resolutions 90% of the time, while the ESG-focused mutual funds and ETFs supported those resolutions 85% of the time, on average, Morningstar found.
The report found six fund providers with higher rates of support for ESG votes than pensions: Amundi US (100%), Xtrackers (100%), Northern Funds (100%), Calvert (99%), American Century (99%) and TIAA/Nuveen (92%). Meanwhile, the report identified several big fund firms that lagged the ESG-focused funds average: BlackRock/iShares (74%), State Street (66%), Vanguard (51%) and Dimensional Fund Advisors (43%).
Compared with general shareholder votes, public pensions were much more likely to support resolutions around ESG governance (93% versus 43%) and worker protection (92% versus 51%), excluding vote results from company insider shareholders. The differences were less pronounced on diversity and inclusion (94% versus 73%) and climate change (86% versus 65%). The report analyzed data from 72 ESG shareholder resolutions in 2021, with results from a sample of the biggest public pensions in the country, representing about $3.4 trillion in assets, according to Morningstar. The report used 2021 data, rather than from the current proxy season, as pension plans often have a lag time in reporting how they voted.
This story was originally published on ESG Clarity.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
