Finding an alternative to the proxy advisory duopoly: As You Vote

 

The importance of proxy voting continues to grow, particularly in light of increasing shareholder investment in mutual funds, both actively and passively managed, in the US and the EU. A key issue is the influence of proxy advisory firms, which guide institutional investors’ voting decisions. These firms have a significant impact on corporate governance, with Glass Lewis and ISS dominating the global market and essentially forming a duopoly. 

In addition, a significant gap has emerged between the pioneers of sustainable investing and the services available to them from proxy service providers, which often have unambitious policies on ESG issues. 

To address this, SfC is organising a series of webinars with alternative proxy advisors. In 2024, we held two webinars with Tumelo and Ethos Services, the operational arm of Swiss SfC member Ethos, which also offers proxy voting services. Last week, we hosted a webinar with As You Sow.

Andrew Behar, CEO of As You Sow, and Alex Thaler, CEO of Iconik, walked us through their proxy voting service As You Vote, an impactful tool for investors with a strong ESG focus. For example, in 2022 they voted
 

This is certainly a good starting point for making a difference at the AGMs of investee companies.