Vanguard to expand investor choice program (2024)
| Environmental, social, and corporate governance |
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What’s the story?
Vanguard—the second-largest asset management firm in the world—announced it will allow more investors to vote the shares underlying their funds in the 2025 proxy season. Three additional funds will offer the option, doubling the number of Vanguard clients offered the choice.
Why does it matter?
ESG opponents have criticized large passive asset management firms for voting in favor of social and environmental corporate policies on behalf of fund investors. Investor choice programs like Vanguard’s allow individuals to vote their preferences in shareholder elections, including on proposals related to ESG.
Read more:
According to The Financial Times:
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Nearly 4mn people controlling up to $250bn in shares in US companies will now be able to choose one of five options, which also include letting Vanguard make the decision, voting with management, prioritising environmental, social and governance factors or in effect voting “present”. The addition of a profits-above-politics option comes as Vanguard and other large asset managers try to navigate a conservative backlash against ESG without angering customers who remain committed to fighting climate change and social inequality. “It’s a response to feedback from investors,” said John Galloway, Vanguard’s global investment stewardship officer. “Investors have different perspectives on what they believe maximises shareholder value.”[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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