The SEC is quashing more company requests to exclude shareholder proposals related to climate and social issues from their proxies after a significant policy change in November.
The agency said last year that it would start factoring in broader social policy considerations when evaluating requests to cast aside proxy proposals that companies see as micromanagement or interfering with regular business operations.
That policy shift on “no-action letters” has emboldened retail and activist investors to be more aggressive with environmental and social proxy proposals, said Derek Zaba, a Sidley Austin LLP partner and co-chair of the firm’s shareholder activism practice.
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