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What drives sustainable institutional engagement and voting behavior?

Author

Listed:
  • Martin Nerlinger

    (University of St. Gallen - School of Finance; Swiss Finance Institute)

  • Martin Rohleder

    (University of Augsburg)

  • Marco Wilkens

    (University of Augsburg)

  • Jonas Zink

Abstract

We examine what drives institutional engagement and voting on ESG-related shareholder proposals, using data from PRI and Morningstar. We find that personal engagement often substitutes for voting, especially among large fund families and those using meetings or site visits. Funds that vote more often or disclose less are less supportive of ESG proposals, while those filing proposals or outsourcing votes show more support. Collaborative engagement and longer PRI membership correlate with stronger ESG voting. Though engagement-active funds don't show major ESG performance gains, they increasingly support firms' ESG improvements, highlighting the role of active ownership in promoting sustainability.

Suggested Citation

  • Martin Nerlinger & Martin Rohleder & Marco Wilkens & Jonas Zink, 2025. "What drives sustainable institutional engagement and voting behavior?," Swiss Finance Institute Research Paper Series 25-89, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp2589
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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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