The number of votes on ESG-related resolutions at US company AGMs fell by a fifth this year, according to analysis by data provider Morningstar, in response to regulatory intervention in February.
Following Securities and Exchange Commission (SEC) guidance which strengthened the ability of firms to block resolutions, the number of voted proposals fell 22% in the 2025 proxy year.
Morningstar said the number of poorly-supported resolutions – those that failed to reach the 5% support threshold that permits a proposal to be resubmitted – fell to 64 from 100 in 2024. But the proportion of poorly-supported proposals increased to 27% in the 2025 proxy year, from 25% in the previous year and from a 2021 low of 7%.
Meanwhile the number of resolutions classed as significant by Morningstar – those with 30% adjusted support, which is support by shareholders independent of the company – fell from 107 last year to just 30 in 2025.
“Following this year’s proxy voting season, it’s clear the market is losing critical signals on sustainability factors many investors view as vital for long-term investment decisions,” said Lindsey Stewart, Director of Institutional Investor Content at Morningstar.
Average support for ESG resolutions, excluding those by “anti-ESG” filers, held steady at around 26%–27% in 2025, but there was a widening gap between support for governance-related resolutions and votes in favour of those concerning environmental and social issues. Average support for governance proposals stood at 35% in the 2025 proxy year (36% in 2024), compared with 16% for conventional environmental and social proposals (20% in 2024).
