Investment Institute
Temáticas de inversión

AGM season 2023: New challenges highlight the achievements of responsible investors


Key points:

  • There has been a revolution in corporate annual shareholder meetings over recent years. Companies have been encouraged towards higher standards of reporting and behaviour by responsible investors
  • The most recent AGM season has seen intriguing themes emerge around the appropriateness of pay deals, a divergence in ESG resolutions and concerns around the role of voting
  • The scenario for annual meetings is now more complex, with competing interests at play, but we see this as a reflection of the strides made to put sustainability and good governance at the heart of corporate decision making

The landscape for corporate governance has seen a revolution over the past few decades. It used to be the case that annual general meetings (AGMs) were sleepy affairs where company resolutions were generally rubber-stamped by shareholders with little appetite to rock the boat. However, a series of governance crises at the beginning of this century and a concurrent evolution in regulation have encouraged asset managers and other institutions to deepen their expertise in the governance field – and driven corporates to improve their accountability to shareholders.

In many ways, it has been a triumph of responsible investment. Active, engaged investors have managed to spotlight the potential risks and opportunities linked to environmental, social and governance (ESG) themes and make them part of the mainstream debate around corporate performance. Now, rather than sleepy AGMs, we see active, complex and material consideration of investor concerns which we think serves to benefit all stakeholders over the short and long term.

Traditional governance topics continue to develop, including the steady evolution of ‘say-on-pay’ votes across various geographies. Most notable, though, has been the integration of shareholder expectations around ESG, reflected either through the multiplication of ESG-related proposals submitted by shareholders, or through the early development of ‘say-on-climate’ resolutions submitted by companies, often after pressure from their investors.

AGMs are now an unmissable opportunity for dialogue between shareholders, corporate leadership and, increasingly, civil society. In this paper, we discuss three major trends from the 2023 meeting season that highlight how ESG topics are increasingly entwined in the meeting process and how shareholder voting has become a concrete avenue to enact meaningful stewardship of assets.

Read the full article
Download report (599.47 KB)

Related Articles

Temáticas de inversión

COP28: Limited expectations met with some progress on climate finance

Temáticas de inversión

COP28: What can investors reasonably expect?

Temáticas de inversión

Biofuels and the energy transition: Green sprouts or biowashing?

    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales, No: 01431068. Registered Office: 22 Bishopsgate, London, EC2N 4BQ.

    In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.

    © 2023 AXA Investment Managers. All rights reserved

    Image source: Getty Images UK.