Investors approve ESG proposals at Lowe’s, Twitter, Travelers

The busiest week of the biggest proxy season ever saw several ESG-themed shareholder proposals pass.

By Emile Hallez, June 6, 2022

Overall, most votes did not go in favor of the proposals submitted by shareholders, but there have been many more appearing on ballots than ever before.

In prior years, it was all but unheard of for shareholder resolutions to pass, especially those with ESG themes, although minority votes with considerable support are sometimes still seen as a message from investors that management should take note of. That makes the results seen during the current proxy season particularly significant.

Lowe’s, for one example, saw its shareholders approve a measure brought by Arjuna Capital calling for the company to report median and adjusted pay gaps by gender and race. Disney investors approved a similar measure in March.

“Investors expect a new standard of accountability on racial and gender pay equity and today Lowe’s board heard that message loud and clear,” Arjuna managing partner Natasha Lamb said in a statement. “Managing pay equity is not only supportive of Lowe’s diversity and inclusion goals, it will also allow the company to attract and retain diverse talent, positioning the company for stronger performance.”

That was the only shareholder resolution to pass at Lowe’s, although several others were filed, including what appears to be the first proxy vote related to the US Supreme Court’s leaked decision overturning Roe v. Wade. Lowe’s had not publicly reported the votes’ margins as of Thursday.

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