The era of passive capital is over. A review of proxy voting trends by the 'Big Three' (BlackRock, Vanguard, State Street) reveals a structural shift. Institutional support for Human Capital and Social proposals has moved from 'niche' to 'mainstream.' The data indicates that major asset managers are increasingly voting *against* directors who fail to oversee material social risks (diversity, human rights). This shifts 'Values' from a soft preference to a hard constraint: companies that fail on social metrics now face the risk of losing their own Board members.
https://www.morningstar.com/business/insights/research/esg-proxy-voting-big-threeWe align with the 'Universal Owners.' The largest pools of capital in the world have decided that social risk is investment risk. We do not bet against the house. When we see a company ignoring human capital signals, we see a company risking its cost of capital and its governance stability. We invest in firms that are 'Proxy Proof'—those actively managing social risks before they become shareholder rebellions.
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