2025 proxy season: sharp fall in significant resolutions as US-Europe gap persists
Investor support for shareholder resolutions has dropped markedly, with the gap between US and European asset managers remaining wide according to Morningstar’s latest Proxy Voting report.
Changes to US Securities and Exchange Commission (SEC) guidance on shareholder resolutions, announced in February 2025, have led to a 22% fall in proposals put to a vote and a 40% drop in environmental and social (E&S) resolutions, Morningstar’s research shows. At the same time, the number of resolutions attracting “significant” shareholder support (defined as more than 30%) has collapsed from 107 in the 2024 proxy year to just 30 in 2025.
ESG support erodes
One factor behind the decline in E&S support is the growing caution among US asset managers, who are now far more willing to approve changes to governance arrangements than to endorse ESG proposals. Average investor support for ESG resolutions has fallen from a peak of more than 30% in 2021 to just over 10% in 2025, while backing for governance-related resolutions has remained steady at above 30% over the same period.
“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. “There were only 30 significant environmental and social resolutions in the 2025 proxy year—those with at least 30% support from independent shareholders—a stark contrast to the 100-plus we saw in each of the five years prior.”
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Regional divergence
Morningstar’s data highlights a widening regional divide. European managers continue to show overwhelming support for E&S resolutions, while their US counterparts have grown increasingly reluctant.
Support from European asset managers remained consistently high at 91% in 2025. By contrast, average US support fell from a peak of 46% in 2021 to 17% in 2024. The figure held relatively steady at 18% in 2025, suggesting the anti-ESG slump may have reached a trough.
“The wide gap in voting support for significant E&S resolutions between US and European asset managers persists, but it narrowed slightly in 2025,” Stewart said. “While six major US asset managers—BlackRock, State Street, Vanguard, J.P. Morgan, Invesco and Dimensional—showed an average support level of 18% (a modest rise from 17% in 2024, but far below the 46% peak in 2021), their European counterparts—Amundi, Fidelity, Legal & General, NBIM, Schroders and UBS—maintained a strikingly high average of 91%, consistent over the past five years.”
Net Zero backdrop
The findings come as the Net Zero Asset Managers initiative (NZAM), the UN-convened stewardship network, undergoes a major overhaul. Earlier this year, the initiative suspended its activities following high-profile exits by US members including BlackRock, the world’s largest asset manager.
The coalition has since removed references to membership from its website and is consulting members on revised criteria for participation, with an announcement on new requirements expected before the end of the year.
Meanwhile, European asset owners are signalling frustration at managers’ retreat from climate stewardship. Several pension funds, including the People’s Partnership, Akademiker Pension and Dutch fund PFZW, have cancelled mandates with large US managers in response.
