Vanguard has released results from its 2024 Investor Choice proxy voting pilot, showing a significant portion of investors opting for ESG-focused voting policies. Launched in early 2023 and expanded in 2024 to cover five equity index funds totaling over $100 billion in assets, the pilot allowed investors to select from several voting policy options tailored to their preferences. Approximately 40,000 investors participated in the program during the 2024 proxy season. Of these, 24.4% chose the Third Party ESG Policy, which focuses on mitigating risks related to environmental, social, and governance (ESG) issues. A larger portion, 43%, opted for the Vanguard-Advised Funds Policy, while 30.3% selected the Company Board-Aligned Policy, which follows recommendations from portfolio company boards. Only 2.3% chose not to vote. The data showed differences in policy choices between different funds.
Investors in the Vanguard US ESG Equity ETF were particularly interested in the ESG policy, with 78% choosing it, compared to just 18% of investors in the Vanguard Dividend Forecast Fund. John Galloway, head of global investment research at Vanguard, highlighted the importance of this program, saying it will help investors align their investments with their own values and support their long-term financial goals.