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Companies Saw Increased Success Against Activist Investors This Proxy Season

Shareholder proposals allow activist investors to push for climate goals during annual company meetings, despite frequent corporate resistance.

Shareholder proposals are a key tool for activist investors addressing climate change, enabling them to raise issues like emissions goals during a company’s annual meeting for a vote.

This process involves extensive exchanges of letters among shareholders, companies, and the U.S. Securities and Exchange Commission (SEC). The proposals, often detailed and lawyer-reviewed, are frequently accused of “micromanagement” by companies.

According to new data from the Sustainable Investing Institute and Ceres, companies attempting to exclude investor input from annual meetings had a 68 percent success rate with the SEC this proxy season.

The Role of Shareholder Activism

Shareholders do not manage a company, a principle influencing what investors can address at annual meetings, explained Andrew Shalit, a shareholder advocate at Green Century Funds. “It’s not our responsibility to make day-to-day decisions,” he said.

Disputes arise over what constitutes “detailed management decision,” leading companies like Walmart and Tractor Supply to accuse Green Century Funds of “micromanaging.” Companies can request the SEC’s informal permission to exclude proposals.

The SEC's new rule requires for the first time that companies disclose their greenhouse gas emissions. Credit: Saul Loeb/AFP via Getty Images
In this proxy season companies that sought to exclude investors input from their annual meetings had a 68 percent chance of getting the go ahead from the SEC Credit Saul LoebAFP via Getty Images

Green Century Funds requested emissions data from companies like Lowe’s, which agreed, while Tractor Supply and Walmart excluded similar proposals with SEC permission. The SEC stated: “The Proposal seeks to micromanage the Company.”

Last year, Green Century Funds’ proposal to Amazon to “measure and disclose scope 3 greenhouse gas emissions” was excluded. Simplified language in a subsequent proposal avoided exclusion, gathering 15 percent of votes at the 2024 annual meeting.

‘Little Bit of Political Football’

The SEC’s response rate to no-action requests fluctuates. This proxy season’s 68 percent approval for companies aligns with the Trump administration’s average. In 2022, the SEC sided with companies 38 percent of the time, according to data from Gibson, Dunn & Crutcher LLP.

Heidi Welsh from the Sustainable Investment Institute notes that political dynamics can influence agency staff behavior. The SEC rescinded Trump-era bulletins and issued a new one under Biden, aiming to clarify climate proposal rules.

At SEC Speaks 2024, Michael Seaman stated that the review process is procedural, not political. “The conclusion should not be that the staff is being inconsistent,” he said.

Kirsten Spalding from Ceres highlighted that the SEC’s process depends on the merit of proposals. “It really comes down to the merit of the proposals,” she said.

Investors today seek detailed company strategies and implementation plans, Spalding noted. “Forward-looking plans and backward-looking risk assessments are all within the realm of appropriate topics for shareholder resolutions.”

In 2024, As You Sow filed resolutions for greater disclosure of transition plans at several U.S. banks. Wells Fargo, Bank of America, and Goldman Sachs filed for no-action decisions with the SEC, which were granted. “I was highly surprised that the SEC decided this was micromanaging,” said Fugere from As You Sow.

A More Aggressive Approach

This proxy season, ExxonMobil’s lawsuit against activist investors over a climate proposal marked a significant event. Exxon aimed for legal clarification on shareholder proposals following the 2021 staff bulletin, accusing activists of masquerading as shareholders. The lawsuit was dismissed by a court last week.

“There is a real pushback against the idea of investor voice,” said Welsh. While the lawsuit is settled for Arjuna and Exxon, the broader issue remains unresolved.

Original Story at insideclimatenews.org

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Mississippi River Faces Persistent Saltwater Intrusion, Region Seeks Long-Term Solutions



For the third consecutive year, the Mississippi River is experiencing significant saltwater intrusion, prompting local communities and environmental experts to search for sustainable solutions. This recurring issue arises as the river’s flow decreases, allowing saltwater to move upstream and threaten drinking water supplies. The U.S. Army Corps of Engineers is actively involved in addressing this problem, employing temporary measures like saltwater barriers to mitigate the impact on affected areas.



Saltwater infiltration poses serious risks to public health and agriculture, as freshwater sources become compromised. The situation is exacerbated by prolonged periods of drought, which have reduced freshwater flow in the Mississippi River. According to the National Weather Service, drought conditions have worsened due to climate change, increasing the frequency and severity of saltwater intrusion events.



Local authorities are collaborating with federal agencies to explore permanent solutions. Among the proposed strategies are enhanced levee systems and improved water management techniques. The U.S. Army Corps of Engineers is evaluating the feasibility of long-term infrastructure projects to prevent further saltwater encroachment. Additionally, community leaders are advocating for increased funding to support these initiatives and safeguard the region’s water resources.



The impact of saltwater intrusion extends beyond drinking water concerns, affecting local ecosystems and agricultural productivity. Farmers in the region have reported crop damage due to elevated salinity levels in irrigation water. The Natural Resources Conservation Service is working with farmers to implement adaptive practices, such as planting salt-tolerant crops and improving soil management techniques.



As the Mississippi River continues to face challenges from saltwater intrusion, stakeholders emphasize the importance of collaborative efforts and innovative solutions. The ongoing threat underscores the need for comprehensive planning and investment to protect one of America’s most vital waterways from the impacts of climate change and environmental stressors.

November 19, 2024



Environmental activists have raised concerns over the fossil fuel sector’s significant impact on COP29, the latest United Nations Climate Change Conference. Activists argue that the industry’s presence diverts focus from critical climate actions.



The conference, designed to promote global climate agreements, faces criticism for allowing fossil fuel companies to participate extensively. Environmental groups claim these companies undermine efforts to reduce carbon emissions and transition to renewable energy sources.



According to Climate Action Network, fossil fuel representatives have increased their lobbying activities, aiming to weaken climate policies. These industries allegedly influence negotiations, leading to watered-down commitments that fail to address the urgency of climate change effectively.



Experts suggest that the influence of these companies stems from financial contributions and longstanding relationships with decision-makers. Critics argue that this affects the conference’s ability to enforce meaningful climate change regulations.



During the event, several protests highlighted the need for transparency and a stronger focus on sustainable energy solutions. Activists are calling for increased participation of renewable energy stakeholders in future conferences.



The controversy surrounding fossil fuel involvement at COP29 underscores the ongoing challenge of balancing industrial interests with the global imperative to combat climate change.



November 19, 2024