With the caveat that the 2025 data is based on a thin population of votes, the gulf in voting preferences on sustainability that has grown between US and European asset managers since 2021 appears to have ceased expanding. However, with European average support stable for several years at above 90%, compared with just 18% among the US managers, the gap remains wide.
In the institutional investor space that I now cover for Morningstar, we’ve seen some of the more sustainability-focutilized asset owners deciding to shift funds to new asset managers, or considering doing so, seeking better alignment with their views on environmental and social topics.
There are now more options than ever that allow institutional investors to better align proxy voting policy implementation with their organizational priorities on sustainability, governance, and business ethics—including proxy voting policy choice and “multi-track” stewardship policies offered by a growing number of large asset managers.
Still—as we discussed at length at last month’s Morningstar Sustainable Investing Summit—many institutions will continue to consider whether a modify of mandate is their preferred shift.
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