What trend is observed with ESG resolutions?

What trend is observed with ESG resolutions?

• A. The withdrawal rate is decreasing
• B. The withdrawal rate stays constant
• C. There is no data on withdrawal rates
• D. The withdrawal rate of ESG resolutions continues to rise

Answer: (D)

The trend being tested is that the withdrawal rate for ESG resolutions has been increasing. Over time, more ESG proposals are settled through engagement and agreement between investors and companies, so sponsors withdraw their resolutions after a company commits to actions or reaches an understanding with the proponents. This leads to a rising withdrawal rate because outcomes are being achieved without requiring a full vote, rather than the rate falling, staying the same, or data being unavailable. In short, rising withdrawal rates reflect growing effectiveness of dialogue and negotiated commitments in addressing ESG concerns.

The trend being tested is that the withdrawal rate for ESG resolutions has been increasing. Over time, more ESG proposals are settled through engagement and agreement between investors and companies, so sponsors withdraw their resolutions after a company commits to actions or reaches an understanding with the proponents. This leads to a rising withdrawal rate because outcomes are being achieved without requiring a full vote, rather than the rate falling, staying the same, or data being unavailable. In short, rising withdrawal rates reflect growing effectiveness of dialogue and negotiated commitments in addressing ESG concerns.