Major Investors Are Improving Transparency Around Their Voting Practices

In brief, the article covers AQTION’s second edition of “Stewardship in AQTION” report that analyzes the voting and engagement policies of 65 of the world's largest investors, managing over $91 trillion in assets.

The study highlights that transparency is improving, with the majority of investors now publishing their voting policies, engagement reports, and in some cases, the names of companies they engage with. Some even disclose their voting intentions ahead of shareholder meetings to increase pressure on companies, although sovereign wealth funds generally remain opaque, with Norway’s Norges Bank IM being a notable exception.

The article also underscores that executive compensation remains a key concern, with many investors opposing exceptional pay packages unless clearly tied to long-term value creation. Governance issues and board responsiveness are under scrutiny, and investors are increasingly using director elections to hold companies accountable on governance, climate, and controversy-related matters. While climate concerns are present, they  are addressed unevenly. Many investors are pushing for emissions disclosures,  yet few include climate alignment in their political lobbying guidelines. Additionally, anti-ESG pressure is rising in the U.S., with some investors removing diversity and inclusion references from voting policies—though support for anti-ESG resolutions remains limited.

Lastly, the findings offer insights  into investors’ voting behaviour at high-profiles general meetings. European investors and smaller firms are more likely to challenge companies, while large U.S. and Anglo-Saxon funds tend to support management.

The full article can be accessed using this link.