State Street’s annual stewardship report reveals these and other noteworthy statistics for 2022:
Of 956 comprehensive engagements, 64% were with North American companies and more than 80% involved State Street’s multi-year stewardship priorities, which consist of effective board oversight, climate risk management, human capital management, and diversity, equity, and inclusion.
State Street voted in accordance with management recommendations on 90% of shareholder proposals (based on 4,490 proposals) and 83% of management proposals (based on 200,456 proposals) worldwide.
By shareholder proposal category, it voted against management’s recommendations most frequently on E&S and compensation-related proposals.
Globally, State Street engaged with 265 companies on climate change risks and voted on 155 climate-related shareholder proposals in 2022. Of those shareholder proposals voted, State Street supported 44% and voted against directors at 151 companies that failed to provide TCFD-aligned disclosure. Notwithstanding reservations about potential unintended consequences associated say-on-climate voting generally, it supported more than 80% of the 54 shareholder and management say-on-climate proposals that went to a vote. Its support for other climate-related proposals varied, as shown here:
Notably, State Street attributed its 5% decline in support year-over-year for climate-related proposals to their overall targeting and prescriptiveness. Going forward, its voting approach on climate-related (as well as other) shareholder proposals expressly takes into account materiality and prescriptiveness:
