
Trump’s policies reshape shareholder climate action as ESG proposals plunge
Environmental, social, and governance shareholder proposals have dropped sharply in 2025 as investors navigate a political landscape shaped by President Trump’s regulatory overhaul and attacks on socially responsible investing.
Joseph Winters reports for Grist.
In short:
- Environmental, social, and governance (ESG) shareholder proposals fell 34% this year, as investors anticipate regulatory hurdles under a new, more conservative Securities and Exchange Commission (SEC).
- Two new SEC policies make it harder to submit and sustain ESG proposals, while giving companies more opportunities to exclude them from proxy statements.
- Some companies are now more open to negotiating with investors to avoid public proxy votes, leading to a spike in withdrawn proposals compared to 2024.
Key quote:
“It was clearly a biased decision stacked against shareholders.”
— Michael Passoff, CEO of Proxy Impact
Why this matters:
Once a buzzy acronym on Wall Street and a rallying cry for sustainability advocates, ESG investing is now under siege, especially following President Trump’s return to office. Republican lawmakers and conservative pundits have framed ESG as “woke capitalism,” portraying it as a vehicle for imposing liberal values on business. In response, red-state legislatures have introduced or passed laws that restrict the use of ESG criteria in public investments, while companies are increasingly filing “no-action” requests to avoid shareholder votes on climate-related proposals.
ESG is a framework for evaluating long-term risks, including those posed by climate change. As sea levels rise and extreme weather intensifies, the rollback of ESG could erode transparency around corporate emissions and delay the already-fragile transition to clean energy.
Read more:
- Trump’s energy secretary seeks to curb climate-conscious retirement investing
- How to shift to environmentally conscious investments