24/11/2025
When big companies face pressure to clean up their act – whether it’s cutting emissions, protecting Indigenous heritage, or taking human rights seriously – we often credit activists, journalists, or everyday citizens who speak out. But there’s another group quietly shaping these battles: proxy advisors.
Most people have never heard of them. Yet their guidance influences how trillions of dollars in global investments are voted at company annual meetings. And those votes decide whether a company’s leaders are rewarded, challenged, or shown the door.
Why Proxy Advisors Matter
Large investors, like pension funds, typically don’t have the time to analyse every shareholder vote themselves. So they rely on proxy advisors to tell them how to vote. That means when proxy advisors support a call for stronger climate action or better protection of Indigenous heritage, companies feel real pressure to change.
And when proxy advisors don’t support those calls, campaigns can stall.
Two Big Examples
The paper, “The Political Influence of Proxy Advisors in Campaigns for Ethical Investment: Guiding the Invisible Hand”, describes two clear examples:
After Rio Tinto destroyed the 46,000-year-old Juukan Gorge caves, proxy advisors joined civil society and major investors in demanding accountability. Their stance helped push out senior executives and block generous exit bonuses.
At Woodside Energy, proxy advisors recommended voting against the company’s climate plan, calling it insufficient. Shareholders followed that guidance and rejected the plan outright.
In both cases, quiet influence had loud consequences.
A Hidden Source of Power
As the study demonstrates, only two firms dominate this industry. That makes proxy advisors incredibly powerful actors who help set the “norms” for what responsible corporate behaviour looks like.
They’re not activists. But their decisions – based on what they judge to be financial and social risks – can make or break campaigns for ethical investment.
Why the Public Should Care
If we want companies to act responsibly, we need to understand who shapes the decisions of the investors behind them. Proxy advisors may operate out of the spotlight, but they play a pivotal role in whether social and environmental values gain traction in the marketplace.
Shining a light on these hidden influencers is essential to making corporate power more transparent and more accountable to the public good.