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Climate Change and Mutual Fund Voting on Climate Proposals

Author

Listed:
  • Alberta Di Giuli

    (Finance Department, ESCP Business School, 10123 Turin, Italy)

  • Alexandre Garel

    (Finance Department, Audencia Business School, 44300 Nantes, France)

  • Roni Michaely

    (Finance Department, University of Hong Kong, Pok Fu Lam, Hong Kong; and European Corporate Governance Institute, 1000 Brussels, Belgium)

  • Arthur Romec

    (Economics & Finance Department, TBS Business School, 31068 Toulouse, France)

Abstract

This paper explores whether investors’ personal experience with climate change affects their voting behavior on climate change–related proposals. We find that fund managers exposed to abnormally hot temperatures are significantly more likely to support climate proposals. We further show that the effect is persistent. We observe significant heterogeneity in the effect of hot temperatures, depending on firm-level climate risk, the quality of the proposals, fund investment strategy, and prior awareness of climate change. Fund managers’ personal experience with climate change matters for the outcome of climate proposals as it affects the aggregate support they receive. Fund managers exposed to abnormally hot temperatures are also more likely to divest from stocks with greater exposure to climate change.

Suggested Citation

  • Alberta Di Giuli & Alexandre Garel & Roni Michaely & Arthur Romec, 2026. "Climate Change and Mutual Fund Voting on Climate Proposals," Management Science, INFORMS, vol. 72(2), pages 1253-1276, February.
    • Handle: RePEc:inm:ormnsc:v:72:y:2026:i:2:p:1253-1276
    DOI: 10.1287/mnsc.2022.03733
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    References listed on IDEAS

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