Animal welfare, DEI and more: Banks face votes on hot topics

It's again that time of year when banks face shareholder votes on a variety of controversial topics they'd prefer not to wade into.

The number of shareholder proposals that made it onto the annual ballots of large, publicly traded banks is down this year following new Securities and Exchange Commission guidance that made it easier for companies to exclude proposals from their proxies.

Nonetheless, many big banks will again face off this spring against outside groups that are hoping to shape their policies on politically charged issues. At the 10 largest U.S. banks by asset size, the topics that will be the subject of shareholder votes include animal welfare, debanking and Indigenous people's rights.

What follows is a guide to hot topics at the big banks' upcoming annual meetings.

Animal welfare

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Animal welfare oversight is the subject of shareholder proposals filed with at least two of the nation's largest banks, Bank of America and Citigroup

. The motions were filed by John Harrington, president and CEO of Harrington Investments, an investment firm based in Napa, California.

A similar proposal last year, also filed by Harrington, appeared on Citi's 2024 proxy statement. It received support from roughly 7.7% of Citi shareholders, according to Harrington Investments' website.

Harrington is arguing that the mismanagement of animal welfare issues — including animal testing, factory farming and potential liabilities related to food safety, such as diseases passed from animals to humans — present "material financial, operational and reputational risks" for companies that get loans from Bank of America and Citi, as well as for the banks themselves.

Neither bank includes "animal welfare" in any of its reports, policies or governance documents, according to Harrington. He's asking both banks to publish reports that disclose whether and how the boards of directors manage animal welfare risks when making financing decisions.

The proposals come about six months after a group of 105 climate change and animal welfare organizations sent an open letter to the heads of sustainable finance at Bank of America, Citi and JPMorgan Chase. The letter called on each bank to stop making loans and providing underwriting services to companies operating or involved with large factory farms.

The boards at both Bank of America and Citi have recommended that shareholders vote against the proposals, saying that a report on such issues is unnecessary because animal welfare is included in each company's existing environmental and social risk policy framework.

Anti-affirmative action

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Goldman Sachs shareholders will vote on a proposal that takes aim at the company's efforts to support employees who are members of racial minority groups.

The National Center for Public Policy Research, the conservative group that is backing the measure, argues that Goldman could be vulnerable to a large payout in a potential lawsuit filed by white employees who allege discrimination. It points to recent Supreme Court decisions that reined in affirmative action.

Last year, when the group filed a similar measure at Citi, it attracted miniscule support. But the political environment is different this year. In the face of the Trump administration's hostility to diversity, equity and inclusion programs, numerous banks have been eliminating, or watering down, DEI pledges.

At Goldman Sachs, one example of what the conservative group describes as "arguably unethical and illegal racial discrimination" is the bank's establishment of so-called "inclusion networks" for employees.

Goldman says on its website that it supports various such networks, including an Asian Network, a Black Network and a Hispanic/Latinx Network. The website also notes that the networks are open to all professionals at Goldman Sachs.

The shareholder group is calling for an "independent racial discrimination audit" that would analyze the bank's "legal and reputational risks stemming from its race-based initiatives."

Goldman is urging shareholders to vote against the proposal.

"We are committed to operating diversity programs and initiatives and maintaining related policies that comply with the law," the bank wrote in its response. "We are aware that the law in this area is evolving and we have already evaluated our diversity programs, initiatives and policies — and made changes where appropriate — in order to satisfy applicable legal requirements."

Indigenous people's rights

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Citigroup and Wells Fargo are once again facing shareholder resolutions related to Indigenous people's rights — and how well each bank respects those rights when making lending decisions.

The Sisters of St. Joseph of Peace in New Jersey and three other religiously affiliated investors are asking Citi to provide a report outlining the effectiveness of the bank's policies, practices and performance indicators in respecting human rights standards for Indigenous people in existing and proposed general corporate and project financing. The American Baptist Home Mission Societies in Pennsylvania and two unnamed co-filers have filed a similar resolution at Wells.

Both banks had sought to have the proposals omitted from their 2025 proxy statements. But the Securities and Exchange Commission rejected their requests.

The shareholder groups have been pressuring both banks for years to disclose more details about their adherence to Indigenous people's rights when making loans. Last year, similar proposals failed to receive majority support at either bank. About 26% of Citi shareholders and 23.9% of Wells shareholders voted "yes" last year, down slightly from previous years.

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The boards of both banks are recommending that shareholders vote against the 2025 proposals.

In Citi's case, the bank is arguing that it already produced a report about its policies and practices related to Indigenous people's rights, which covered its due diligence procedures and explained how it identifies potential risks for Indigenous people in its financed projects.

Wells, which met with the shareholder groups following last year's vote, said it has taken certain steps to better identity and manage issues relating to Indigenous people's rights. Those moves include establishing risk management policies and procedures and enhancing due diligence.

The bank said it believes it is "addressing the risks to Indigenous communities described in the proposal through our board oversight, our existing policies and procedures to evaluate and mitigate potential risks, and our ongoing commitment to Indigenous communities."

A similar proposal is expected to be included in JPMorgan Chase's 2025 proxy statement, which has not yet been filed.

Prevention of workplace harassment

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For the third year in a row, Wells Fargo shareholders will vote on a proposal that would require the bank to produce a report about how well it prevents workplace harassment and discrimination, in order to show whether Wells is improving its workforce management.

The resolution was once again filed by Thomas DiNapoli, New York State Comptroller and trustee of the state's Common Retirement Fund, which owns five million shares of common stock in the bank.

Last year, 28.2% of shareholders voted in favor of the proposal. That was down from 2023, when it got support from a slim majority of Wells' shareholders — 52.3%.

DiNapoli wants the report to include information such as the total dollar amount of workplace disputes settled by the company involving workplace abuse, harassment and discrimination within the previous three years, and the total number of pending harassment or discrimination complaints the bank is trying to resolve internally or through arbitration or litigation.

The call for such a report follows scrutiny over certain reported hiring practices at Wells, including lawsuits alleging the bank misled investors about its diversity hiring efforts.

Wells, in its response to the comptroller's proposal, said the board has already taken action to address the concerns. It noted the year-over–year decrease in shareholder support and recommended voting against the resolution.

"We view the subsequent 2024 voting outcome, where the proposal did not pass and support declined from 52.3% in 2023 to 28.2% in 2024, as a reflection of our efforts to address this topic appropriately and in a manner consistent with shareholder feedback," the company said.

Debanking

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U.S. Bancorp is advising its shareholders to vote against a measure seeking to force the Minneapolis bank to reckon with the issue of potential discrimination against customers based on their political views.

The proposal is backed by American Conservative Values ETF, which describes itself as the first exchange traded fund for ideologically conservative investors.

The measure calls for U.S. Bancorp to issue a report on how it oversees risks related to discrimination against customers based on not only their political views, but also their race, religion, sex and national origin.

"U.S. Bancorp needs to increase transparency around these practices and provide assurances to customers that it does not discriminate based on a customer's political or religious views," the conservative group wrote.

In response, U.S. Bank's parent company wrote that its policies prohibit discrimination in lending based on race, sex, national origin and political affiliation.

"Our approach to managing and overseeing customer relationships balances the company's overall business strategy with its risk tolerance for a broad range of risks, including operational, compliance and credit risks," the bank stated. "However, it is not our policy or practice to deny services based on political or religious beliefs."