SEC’s Latest Ruling on Shareholder Climate Action Proposal Provides Further Insight

April 11, 2019

Cadwalader Corporate partner Josh Apfelroth commented in Law360 on the SEC’s recent ruling that allow certain oil and gas companies to exclude from its upcoming annual shareholder meeting a proposal calling for the adoption and disclosure of greenhouse gas emissions targets that are aligned with the Paris climate agreement.

According to Law360, the decision is the agency’s latest to address the permissibility of climate-related shareholder proposals and, some experts say, adds clarity to their perspective on the respective roles of boards of directors and shareholder action as they relate to important public policy issues.

“[The SEC has] made a distinction between requests for general disclosure around climate change and policy and requests for information around specific GHG emission targets,” Apfelroth told Law360. “It is subjective, but this serves as guidance where investors and companies have some clarity around what will be permitted and what won't be."

Read the article (registration may be required) here.