New research shows just how dramatic the drop in proxy-advisor support for shareholder proposals has been.
Advisory firm SquareWell Partners conducted analysis of voting and engagement trends in 2024 and 2025, including an evaluation of the world’s two largest proxy advisors, ISS and Glass Lewis.
It found that ISS’s support for sustainability-related shareholder resolutions fell from 39% in 2024 to 7% in 2025.
This included no support at all for environmental proposals last year, after supporting half of them in 2024.
Glass Lewis saw a gentler drop, from 26% in 2024 to 21% in the first half of 2025.
“Notably, ISS and Glass Lewis were aligned on 98% of environmental proposals that came to a vote at S&P 500 companies in the first half of 2025,” said SquareWell.
“Both recommended voting against the proposals.”
The pair disagreed on just one environmental proposal: a request for construction company Lennar Corporation to disclose emissions targets for its full value chain, which Glass Lewis supported and ISS opposed.
“The low level of support for sustainability-related shareholder proposals in 2025 may partly reflect increasing political and legal pressure on proxy advisors regarding their stance on sustainability topics,” SquareWell observed.
In December, the White House issued an executive order “protecting American investors from foreign-owned and politically-motivated proxy advisors”.
It namechecks ISS and Glass Lewis, saying “these proxy advisors wield enormous influence over corporate governance matters, including shareholder proposals, board composition, and executive compensation, as well as capital markets and the value of Americans’ investments more generally, including 401(k)s, IRAs, and other retirement investment vehicles”.
The White House asked the Securities and Exchange Commission to “consider requiring proxy advisors to provide increased transparency on their recommendations, methodology, and conflicts of interest, especially regarding diversity, equity, and inclusion and environmental, social, and governance factors”.
It also asked the Federal Trade Commission and the Secretary of Labour to consider interventions to limit the influence of proxy advisors.
Perhaps in response to the pressure, Glass Lewis will stop providing standard benchmark guidelines in 2027 – moving to more bespoke recommendations for investors based on their beliefs and policies.
ISS has updated its approach to diversity and equal opportunities, political contributions, human rights and climate change under its US Proxy Voting Guidelines for 2026.
In Europe, SquareWell’s research shows that the pair rejected all but one sustainability-related proposal filed at a STOXX Europe 600 company in 2024.
They both backed a request for Danish transport and logistics company DSV to report on its human rights efforts, which was also supported by the firm’s management.
In the first half of 2025, ISS didn’t recommend support for a single sustainability-related shareholder proposals at a STOXX Europe 600 company.
Glass Lewis supported one: asking UK retailer Next to pay the living wage. It endorsed similar proposals at Marks & Spencer and JD Sports in the second half of 2025.
ISS and Glass Lewis have been contacted for comment.
