The U.S. Securities and Exchange Commission is moving to eliminate a rule that lets shareholders formally submit proposals to companies. That mechanism has become one of the main routes for investor advocacy groups to press corporations on climate and sustainability issues.
Under the current system, shareholders can file resolutions that force votes on topics such as emissions targets or fossil fuel exposure. The SEC's proposed change would remove that avenue, making it harder for these groups to bring climate concerns directly to a company's broader investor base.
Investor and advocacy groups warn that the move would undercut a proven tool for pushing corporate action on climate. Without the ability to file formal proposals, they say, shareholders would lose leverage in engagements with company management on environmental risks and transition planning.