Date of Award
Spring 2023
Degree Name
Bachelor of Science (BS)
Advisor(s)
Svenja Dube
Abstract
In this paper, I explore what types of immaterial ESG activities are demanded by shareholders. The imminence of SEC climate-disclosure regulation, in addition to more investors considering ESG elements in their investment decisions, makes materiality a key issue. In response, the SASB designed its Materiality Framework that identifies material ESG issues by industry to guide sustainability reporting and disclosures. However, prior literature (Grewal et al., 2016; Schopohl, 2017; Bauer et al., 2022) finds that only 34% to 44% of shareholder proposals submitted are on material issues. Using a sample of ESG shareholder proposals from 2010-2021, I examine how the SASB Materiality Framework aligns with the demands of ESG shareholder proposals. I find that shareholders have focused their proposals around the SASB General Issues of Employee Engagement, Diversity & Inclusion, GHG Emissions, and Human Rights & Community Relations, regardless of the defined materiality of these issues. Furthermore, I find mixed results on the impact of materiality on ESG performance and firm value. My results suggest that the SASB Materiality Framework may not capture what issues are most important to shareholders.
Recommended Citation
Simning, Emme, "Analysis of ESG Shareholder Proposals through the Lens of the SASB Materiality Framework" (2023). Gabelli School of Business Honors Thesis Collection. 21.
https://research.library.fordham.edu/gabelli_thesis/21
