FOR IMMEDIATE RELEASE
September 9, 2024
RESPONSE TO THE NEWS THAT VANGUARD DID NOT SUPPORT ANY ENVIRONMENTAL OR SOCIAL MEASURES DURING 2024 US PROXY SEASON
Vanguard recently released its annual stewardship report covering the US, revealing that the asset manager did not support any of the 400 environmental or social shareholder proposals during the 2024 proxy season. Vanguard’s stated reasons for this were that the measures “did not address financially material risks to shareholders at the companies in question or were overly prescriptive in their requests.”
In response to this news, members of the Vanguard S.O.S. campaign released the following statement:
“We fundamentally disagree with Vanguard’s assertion that these proposals did not relate to material financial risks. Any responsible fiduciary recognizes that climate risk is material risk and therefore needs to be mitigated. Vanguard itself has said as much, yet seems determined to do everything it can not to protect its wider portfolio from the financial risks which climate change poses.
“Vanguard’s business model is primarily based on index funds, which are characterized by their inherently low turnover. In funds where trading activity is minimal, investment stewardship—including proxy voting—serves as a crucial tool for managing risks. However, Vanguard’s declining support of environmental and social resolutions, including those advocating for enhanced disclosure, suggests that the firm is shying away from utilizing the available tools to safeguard its clients against emerging risks.
“On the other hand, it was reassuring to see that Vanguard also voted against 40 “counterproposals” that sought to prevent companies from addressing climate and diversity issues. Across the asset management sector, we are seeing that the wind is being taken out of the sails of the anti-ESG movement, and it is being exposed for the fad that it always was.
“Ultimately, it is a very mainstream view that environmental concerns should form a part of any sensible risk mitigation strategy. See, for example, recent statements by US public pension funds defending climate risk management as part of their fiduciary duty. It is our hope that under its new leadership, Vanguard will at long last recognize how far it lags behind its peers in this area and get with the times. Vanguard’s new CEO, Salim Ramji, must address material risk and prioritize responsible business practices through the company’s stewardship and proxy voting strategies.”
About Vanguard S.O.S.
Vanguard S.O.S. is an international campaign pushing Vanguard to chart a new course away from climate catastrophe and toward truly sustainable and responsible investing. The network is made up of civil society organizations, social movements, and financial experts working together to secure a climate-safe future for everyone.
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Contact:
Mark Normington, mark.normington@sunriseproject.org, (971) 337-9781