The number of ESG shareholder resolutions filed at US companies has dropped sharply in 2026, research shows, reflecting a shift in the political and regulatory environment as well as changing corporate strategies.
According to the recent Proxy Preview 2026 report released by As You Sow and Proxy Impact, investors have submitted 184 ESG-related proposals so far this proxy season, compared with 355 at the same point last year. The decline of roughly 48 percent signals a significant change in how shareholder activism is being exercised in the US.
‘The SEC’s new direction may be affecting filings, but the data doesn’t tell the whole story,’ says Amy Galland, co-author of the report. ‘More engagement is happening directly with companies.’
At the center of this trend is growing Republican influence over corporate governance rules and investor engagement. Policymakers and regulators aligned with conservative priorities have sought to limit what they view as excessive shareholder intervention in business decisions, particularly around climate, diversity and political disclosure issues. This has translated into both formal regulatory adjustments and broader political pressure on companies and investors.
One key factor has been rule changes introduced under the Trump administration which have made it more difficult for shareholder proposals to advance. These include restrictions on how activists can use regulatory mechanisms and increased discretion for companies to exclude proposals from proxy ballots.
‘We’re seeing intensified political and legal attacks on shareholder rights and on firms supporting climate and diversity efforts,’ says Michael Passoff, CEO of Proxy Impact and co-author of the research. ‘Shareholders are adapting – reworking proposals to meet SEC rules, stepping up private engagement and, in some cases, going to court.’
This shift toward private negotiation is another important driver of the decline. Companies are showing greater willingness to engage directly with investors to resolve concerns before they escalate into public proposals. While this can still lead to changes in corporate behavior, it reduces the visibility and volume of formal ESG resolutions.
At the same time, support for ESG initiatives has weakened among major institutional investors. Large asset managers have become more cautious, with some arguing that companies have already made meaningful progress on environmental and social commitments. Others point to increasingly prescriptive proposals as a reason for declining support.
Political dynamics have also shaped investor behavior. Republican officials and advocacy groups have criticized ESG investing as politically motivated and potentially harmful to economic performance, particularly in sectors such as energy. This criticism has contributed to a broader reassessment of ESG priorities within parts of the financial industry.
Beyond politics, there are signs of fatigue within the ESG movement itself. After years of rapid growth, the number of proposals and the level of backing they receive may be normalizing. Some companies have scaled back earlier commitments on climate and diversity, suggesting a recalibration rather than a full retreat.
Looking ahead, the future of ESG activism in the US will likely depend on the balance between regulatory constraints and investor persistence. If political pressure continues to reshape the rules of engagement, shareholder advocacy may increasingly move out of public filings and into less visible channels.
‘Shareholders are capitalism’s early warning system,’ says Andrew Behar, CEO of As You Sow. ‘Investors warned Meta for years that its platform was harming children. Recent jury decisions suggest those warnings were ignored – raising the prospect of significant liabilities. Strong management teams respect that long-term investor signal.’
Proxy Preview does not track the number of anti-ESG proposals because proponents do not share the data. Even so, 2025 voting suggests limited investor appetite: shareholders rejected anti-ESG items by near-unanimous margins. ‘In 2025 we saw more than 30 votes of 98 percent and 99 percent against anti-DEI proposals at Costco, Deere, Apple, Disney and other major companies,’ Behar adds. ‘The long-term data is clear: greater diversity is linked to financial outperformance. We’re asking companies to keep disclosing these metrics.’