Shareholder proxy proposals in the U.S. fell 17 % during the first half of the year, according to a ISS‑Corporate report. The decline hits a five‑year low, driven mainly by a drop in environmental and social resolutions. Companies now face a political climate hostile to diversity and climate commitments, while the SEC has pulled back from mediating proxy season disputes today.

With the SEC stepping back, firms gain more discretion over which proposals appear in proxy materials, yet they hesitate to omit items because of legal, investor and reputational risks. Only 17 % of proposals were excluded this year, down from nearly 27 % a year earlier. The shift means more proposals reach shareholder votes, reshaping governance debates for investors and board members.

Governance proposals, in contrast, surged 13 % to a five‑year high. Groups like Proxy Impact linked child‑safety measures to executive pay at Meta, ensuring ballot inclusion. Meanwhile, the National Legal and Policy Center now targets independent board chairs at firms such as Chevron, McDonald’s, ExxonMobil, PepsiCo and Starbucks, reflecting a strategic pivot away from ESG themes for shareholder value and investors.