At every publicly traded corporation, the shareholders often present resolutions, and often they are left-wing and progressive.
The financial firm Vanguard released a report from last year that revealed that it only approved 2% of the environmental and social resolutions in 2023, down from 12% in 2022. It seems they’re standing up for shareholder value.
This marks a significant shift in the investment landscape. This is not just a bureaucratic change; it’s a pivotal moment in the ongoing battle against the ESG (Environmental, Social, Governance) movement that has long dominated corporate America.
For years, companies like Vanguard and BlackRock have pushed ESG initiatives, often at the expense of shareholder interests and sound financial management. These initiatives, while couched in the language of sustainability and social justice, serve as tools for advancing left-wing agendas rather than delivering value to investors. Fortunately, the recent pushback from shareholders and the broader public turn seems to be turning the tide.
Vanguard’s decision to reject a significant number of these proposals, especially in the face of increasing pressure from the SEC’s 2021 guidance, is a clear indication that the ESG movement is losing its grip.
This shift is not just a victory for conservatives; it’s a win for anyone who believes in the primacy of shareholder value and the responsible corporate governance that goes with it. According to Fox Business, the fact that Vanguard attributes its decisions to the “volume and nature of the proposals” and improvements in the company’s disclosures suggests that many of these resolutions were either redundant or poorly conceived.
In rejecting these proposals, Vanguard and BlackRock and others are finally stepping back from the politicization of investment and the overreach of ESG mandates. This is a positive step toward restoring balance and ensuring that corporations remain focused on their primary mission: delivering durable financial returns to their investors.
This post originally appeared at https://www.phyllisschlafly.com/liberalism-and-conservatism/esg-and-dei-are-on-the-way-out/
