Shareholder resolutions at US companies
Shareholder resolutions are proposals submitted by investors for a vote at a company’s annual general meeting (AGM). They are a formal stewardship tool, particularly common in the US, used to encourage improved disclosure or changes in company policy on material environmental, social, or transparency and governance issues.
Here, Investment Analyst Barney Timson discusses the shareholder resolutions we supported in the last quarter, including at Lowe’s, Lennar, Nvidia and Alphabet. As mentioned in our previous quarterly Stewardship Report, we went further at the AGM for Lowe’s, signing a letter of support for one of the shareholder resolutions on the ballot.
Lowe’s
We signed a letter of support for a shareholder resolution filed by As You Sow at Lowe’s, a US home improvement retailer held in the Castlefield Thoughtful World Equity Fund. To date, Castlefield has supported shareholder resolutions by voting in favour at the AGM, this engagement goes further: by signing a supporter letter much earlier in the process prior to the AGM ballot being issued, Castlefield was able to formally demonstrate support for the resolution. This resolution called for greater transparency and action on plastic packaging. It requested disclosure of the company’s plastic packaging footprint and the setting of overall plastic packaging reduction targets. Lowe’s had taken some initial steps to address plastic pollution however it had fallen behind its peers regarding reporting and target setting.
Outcome: The resolution received 17.6% support. This was the first instance this resolution had appeared on the ballot, therefore only required 5% support to reappear on a future ballot.
Lennar
At the AGM for Lennar, the US housebuilder, we supported a shareholder resolution filed by John Chevvedon, the US-based shareholder activist, requesting all Stock to have one-vote per share. Lennar has two types of voting stock, Class A and Class B, with holders entitled to one vote per share and 10 votes per share respectively. Class B holders control approximately 59.0 percent of the total voting power while owning only 12.6 percent of the total outstanding shares. Stuart Miller, the executive chairman, holds approximately 9.7 percent of the company's shares in aggregate, but has 41.8 percent of the company's total voting power. This represents a sizeable block and allows him to wield outsized influence relative to his economic position in the company. Similar dual class share structures are utilised at some of the large tech firms like Meta and SpaceX. We do not agree with them because it reduces the accountability of the insiders that control the voting power, entrenches management and reduces minority shareholder rights.
Outcome: The resolution received 36.7% support. This resolution has appeared on the ballot multiple times over the years therefore required 25% support to reappear on a future ballot.
Nvidia
At the AGM for Nvidia, the designer of hardware and software platforms that power modern AI, we supported a shareholder resolution requesting the disclosure of emissions from Use of Sold Products. The resolution, filed by Green Century Capital Management and Mercy Investments argues that Nvidia should disclose emissions associated with the use of its sold products and suggests that this may represent the company’s leading source of GHG emissions. Company reporting lags its competitors and lacks useful information for shareholders to adequately assess physical and reputational risks resulting from data centre expansion. Nvidia does report Scope 3 emissions for eight categories and plans to further increase disclosure this year. Emissions are verified by independent third parties and the company is engaging suppliers to effect supplier adoption of science-backed emissions reduction targets. Despite this and unlike some key peers, the company does not disclose emissions associated with the use of its sold products, which may expose the company to some risk as this is likely large share of its absolute emissions.
Outcome: The resolution received 17.4% support. This was the first instance this resolution had appeared on the ballot, therefore only required 5% support to reappear on a future ballot.
Alphabet
At the AGM for Alphabet, the owner and operator of Google and YouTube, we supported a Shareholder resolution filed by Inspire Investing. This resolution requested an analysis detailing how Alphabet’s water usage policies and practices align with its fiduciary duty to maximize long-term shareholder value, particularly in relation to sustaining brand growth and advancing artificial intelligence (AI) initiatives. Alphabet discloses its sustainability strategy and progress made towards its disclosed goals including the company’s resource efficiency programs which focus heavily on water stewardship and responsible use related to data centre cooling. Despite this, given the increasing importance of this topic area, we believe further information would be beneficial for stakeholders.
Outcome: The resolution received 1.5% support. Since this is below the 5% threshold for a first time submission, the company can choose to exclude future submissions relating to the same subject matter for the next 3 years. Similarly to Lennar, Alphabet operates a dual class voting stock structure, with the founders possessing 52% of voting rights, which could explain the reduced levels of support for the resolution.
Written by Barney Timson
This article was originally published as part of our Q2 2026 Investment Management Report (IMR).
Information is accurate as at 17.07.2026. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.