ANALYSIS: Proxy Regulation Molds Role of Climate in Business

Conflicting state laws and the SEC’s looming proposed climate rules are creating uncertainty around the legal and disclosure requirements related to ESG. But while a resolution for the climate legal landscape is likely far off, shareholders and companies are looking to define the role of climate in business operations through the proxy process.

And they’re using Rule 14a-8 to do so. This federal regulation sets forth the eligibility requirements for shareholders to submit a proposal that they want to be included in a company’s proxy statement and to be voted on at the annual meeting.

Shareholder proposals on topics including ...