SEC Climate Plan Is New Factor for Activist Shareholder Bids (1)

The SEC’s new climate disclosure proposal is likely to influence negotiating tactics between activist shareholders and companies over emissions and environmental sustainability proposals.

The proposal, announced Monday by the Securities and Exchange Commission, is meant to help investors scrutinize public companies’ claims about greenhouse gas reduction targets, climate risks to their operations, and other environmental metrics.

Shareholders could be moved to withdraw their climate-related proposals if they closely align with SEC-required information and find that companies pledge to work toward compliance with the agency’s rules, Elizabeth Bieber, head of shareholder engagement and activism defense at Freshfields Bruckhaus Deringer LLP ...