Public Engagement Report Q2 2026

Fast reading

Europe has a partially harmonised political system, but the single capital market remains incomplete in several ways.
Scaling a business across Europe is more burdensome and costly than scaling it within the US or China.
By setting the rules that companies operating in Europe must follow, European regulators can shape the environment that global firms must operate within.

Europe has experienced weak growth over two decades, with companies facing different regulations, tax regimes, and standards across member states. Critics of the EU’s green agenda argue that this has increased costs, harming competitiveness, but could leaning further into sustainability become a driver of competitiveness?

In EOS’s Q2 2026 Public Engagement Report, stewardship director Howard Risby tests the argument that Europe’s green ambitions have hindered growth by making the region less attractive to businesses. There are many underlying reasons for this.

Europe has a partially harmonised political system, but the single capital market remains incomplete in several ways. Companies face different regulations, tax regimes, and standards across member states. Consequently, scaling a business across Europe is more burdensome and costly than scaling it within the US or China.

Other evidence suggests that Europe has benefited from its sustainability ambition. By setting the rules that companies operating in Europe must follow, European regulators can shape the environment that global firms must operate within. This gives European companies a first‑mover advantage.

Sustainability can also reduce economic and geopolitical risk. “By cutting reliance on imported fossil fuels, improving energy efficiency, and promoting the circular use of materials, Europe is insulating its economy from volatile commodity prices and supply‑chain shocks, such as the Strait of Hormuz crisis,” he states.

Assessing board culture and dynamics

Also in this report, EOS engagers Diana Glassman and Jaime Gornsztejn explore board culture and dynamics, an important element of board effectiveness. Since our 2020 white paper on this topic, we have developed our approach to assessing the quality of board dynamics, as corporate scandals have revealed fresh insights into board weaknesses.

They suggest that serving on a company’s board can be compared to a team sport. Some teams have a better collective decision-making culture, which allows them to outperform, while others have sub-optimal dynamics, or are more dysfunctional.

Finally, Dana Barnes and Elissa El Moufti highlight some of the key votes from the North American, European and Australian proxy seasons, including shareholder resolutions related to human rights in high-risk regions, datacentre energy demand and AI deployment.

This year’s proxy season saw fewer proposals reaching US ballots, amid a greater emphasis on negotiation, regulation, and strategic engagement. Governance was reasserted as the central focus in North American and European markets, while support for environmental and social proposals continued to soften, especially in the US.

Voting outcomes have become less predictable as investors in both regions are moving towards company-specific decisions, elevating the importance of disclosure quality and company responsiveness.

To find out more, read the EOS Q2 Public Engagement Report.