Investment stewardship
Topics and trends that shaped global governance in 2021
April 05, 2022
Vanguard has released our Investment Stewardship Annual Report for the 12 months ended December 31, 2021. The report outlines our global advocacy, engagement, and voting activities over the past year and provides examples of the impact our stewardship program has had on the governance practices and policies of our portfolio companies.
In 2021, public company boards continued to navigate the effects of the pandemic. Their businesses were subjected to supply chain disruptions, tight labor markets, and changing consumer tastes and buying habits.
Boards also managed the real-time implications of climate change and global, social, and economic unrest that put a spotlight on human rights and diversity, equity, and inclusion (DEI) matters. Vanguard’s Investment Stewardship team engaged with company boards on these issues and analyzed shareholder proposals that focused on these important topics.
Key figures
1,074
portfolio companies engaged (up from 655 the previous year).
556
engagements on board diversity. This number reflects Vanguard’s deepened board diversity advocacy and assessment.
581
engagements related to diversity (up from 198 the previous year). We conducted more outreach to companies perceived as lagging on diversity measures.
47%
support for climate-related proposals, including 27 “Say on Climate” proposals.
46%
support for workforce diversity proposals (up from 19% the previous year). The funds’ increased support in 2021 reflects clarity across the market that workforce disclosure through the Equal Employment Opportunity-1 (EEO-1) format is reasonable and valuable for investors.
Notes: For more details, including key governance developments by region, read our complete Investment Stewardship 2021 Annual Report.
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