Investors Focus Shifting to ESG Accountability, Real-World Impact in 2022 Proxy Season: Nuveen

Nuveen, the $1.3 trillion AUM investment manager of TIAA, anticipates a turning point this year, in which investors will shift focus in their proxy voting and engagement efforts to accountability on climate and ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. issues, moving attention past transparency issues to focus on real-world environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. (E&S) impact.

In it’s newly released 2022 Proxy Season Preview, Nuveen highlights a series of key trends that it anticipates will drive this year’s investor agenda. In addition to a renewed push on ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. accountability, Nuveen also says to expect an increase in the number of ESG-focused shareholder proposals following proxy-related rule changes at the SEC, and for those proposals to contain a sharper degree of specificity around expectations for strategies and real-world outcomes and impact.

Key accountability issues drawing investor focus would include policies, business strategies, oversight structures, incentive pay aligned with ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. issues, and setting clear ESG-related commitments with relevant KPIs, according to the report.

Amy O’Brien, Global Head of Responsible Investing at Nuveen, said:

“In the maturing ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. landscape, investors increasingly recognize that reporting does not automatically generate impact, which in turn, is resulting in a greater focus on accountability as the bridge. We expect this proxy season to place greater emphasis on corporate strategies and ultimate environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. objectives.”

The preview report also indicates that the current proxy season could signal a shift in focus in director election trends, to be more closely aligned with E&S performance, as investors continue to integrate ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. into the investment and stewardship processes.

Nuveen highlights a series of key factors driving these trends, including a successful push by investors over the past few years for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. transparency, along with the rapid growth in the investor’s own ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. commitments. In particular, Nuveen notes that the “rise of net zero commitments from asset owners and asset managers suggests investors may be prepared to translate newly enhanced ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. transparency into investment decision-making, including voting against directors where companies’ carbon footprints are clearly misaligned with the investors’ strategies for achieving net zero.”

Peter Reali, Global Head of Stewardship at Nuveen, said:

“Stewardship has become an essential tool in the responsible investing toolkit ─ a way for shareholders to push for real change. This proxy season will demonstrate a continued evolution in the depth and scope of those efforts as investors grapple with evaluating companies’ near-term practices against environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. impacts that may take years to materialize.”

Click here to view Nuveen’s 2022 Proxy Season Preview.

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