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Sustainability Matters

SEC Decision Will Strengthen Investor Proxy Action on Companies' Climate Targets

What the SEC's reversal of Trump-era restrictions on shareholder resolutions means for the 2022 proxy season.

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Shareholders will have more ways to press companies on topics like climate and human rights thanks to the SEC's reversal of Trump-era restrictions. We welcome this development as a win for shareholder democracy.

The reversal was issued on Wednesday via a staff legal bulletin by the SEC's Division of Corporate Finance. It rescinds earlier SEC guidance from 2017-19 that limits the types of issues shareholders can address via corporate proxy ballots. (We have previously discussed our opposition to these types of restrictions on shareholders' rights.)

Jackie Cook does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.