ESG+ Newsletter – 09 April 2026

Asset owners and asset managers diverge significantly in ESG voting decisions 

New research by OxProx and Kaivalya Research has revealed that asset owners and asset managers are increasingly diverging in their voting on ESG matters. The report analyses more than 4.5 million votes cast by 464 institutional investors across the US, UK, Europe, Canada, Australia and New Zealand. The findings reveal a clear pattern: asset owners are materially more supportive of ESG shareholder proposals, while asset managers more frequently align with company management across all proposal types. 

The gap is most pronounced in shareholder proposals related to supply chains, social capital and environmental issues. Asset owners support these proposals at rates 27-30% higher than asset managers, and they also show stronger backing for climate change and human capital proposals. Regional differences are striking, with UK and EU asset owners supporting ESG shareholder proposals at rates between 28-68% higher than US asset managers across six proposal categories, highlighting fundamentally different stewardship approaches. This misalignment had tangible consequences in 2025, with several European asset owners terminating mandates with US managers. In response to differing client ESG priorities, some large US asset managers have begun splitting their stewardship teams. For issuers, this growing fragmentation in voting behaviour introduces additional complexity and risk in managing sustainability-related agendas. More broadly, the divergence may hinder collective progress and slow advancement on key ESG issues. 

Health overtakes climate change as a top ESG priority for investors 

A report commissioned by Berenberg, the pan-European investment bank, finds that human health has overtaken climate change as the top priority for sustainability-focused institutional investors. Based on a poll of 200 ESG-focused fund managers, the report shows that global warming and fossil fuels are becoming lower priorities, with investors shifting focus to issues such as health, artificial intelligence ethics and corruption. Climate change, which ranked first in 2023 and 2024 and second in 2025, fell to fifth place in 2026. By contrast, health rose from 15th in 2023 to 5th place in 2024 and 2025, before becoming the top priority this year, with 55% of respondents rating it “very important” in stock-picking decisions. 

This shift has been partly attributed to the rise of weight-loss drugs and a more health-conscious Generation Z. Commenting on the findings, The Times noted that the politicisation of ESG, including President Trump’s “anti-ESG agenda”, is influencing sustainability investing. Some funds are increasingly dropping the term ‘ESG’ in favour of ‘sustainable’ to avoid backlash. However, the study ultimately concludes that sustainability investing is “showing signs of maturing”, with investors placing greater emphasis on clear metrics and measurable outcomes. This reflects a more nuanced, context-driven approach that also incorporates broader political and business priorities, including AI, defence and the circular economy. 

Big tech’s data centre expansion  under investor pressure on water and energy use

Investors are pressuring major US-based technology companies to disclose more comprehensive data on waste and energy use by their data centres. According to an article from ESG News, this increased investor pressure comes amid the backdrop of growing community resistance to data centre projects and increased focus on emerging operational risks related to the water and power consumption that data centres require. Recent spikes in the emissions of major US tech companies, largely driven by the data centre buildout, call into question the credibility of these companies’ climate targets. Shareholder resolutions seeking clarity on potential pathways to achieving climate targets have been filed with at least one major US tech company. Water usage by data centres is also under increasing investor scrutiny, with calls for more detailed, site-level disclosures to better “assess exposure to local resource constraints and operational risks.” Given upcoming annual shareholder meetings for several major US technology companies, expect environmental performance and governance practices to face heightened scrutiny. 

‘Electrotech’ offers developing nations path to energy independence 

As oil prices surge amid Middle East tensions, a new Ember report reveals that ‘electrotech’, namely solar panels, wind turbines, batteries, and electric vehicles, are providing climate-vulnerable developing countries a faster, cheaper route to energy security. Partnering with the Climate Vulnerable Forum’s (CVF) 74 member states, the UK-based think-tank found that falling clean energy costs are ‘reshaping the economics of energy’ in emerging markets. Nearly half of CVF members now exceed the US in solar generation capacity, while over half lead in economy-wide electrification. Solar power, once requiring five times more upfront investment than fossil fuels a decade ago, now competes on capital costs and will be cheaper to build than fossil plants by 2035. With zero fuel costs, solar’s economic advantage grows annually. For CVF nations, 64 of which are net fossil fuel importers, this shift is critical. Nineteen countries spend more than half their trade deficit on fuel imports. With oil averaging $100 per barrel this year, import costs could rise by $30 billion.  

ICYMI

• The Swiss government announced the release of its new proposed Federal Act on Sustainable Corporate Governance, a new law setting out updated sustainability-related reporting and due diligence obligations for large companies, ESG News reports.  
• This week saw Governments advancing climate and finance frameworks, with the EU strengthening its carbon market and packaging rules, China launching a new environmental code, the UK reporting a 2% emissions drop, and Australia progressing sustainable finance taxonomy guidance, according to ESG News.