"Shareholder proposals aren’t legally binding. But companies can feel pressure to take them seriously."
"The U.S. Securities and Exchange Commission wants to scrap a rule that allows shareholders to formally petition companies, one of the ways that shareholder advocacy groups have pressed for more action on climate and sustainability.
Investor and advocacy groups warn that the SEC’s move would block a longstanding avenue for pressuring public companies to factor in climate risks that could severely impact their operations.
For instance, investors have used the rule to persuade companies to be more transparent on their emission targets and to better account for other environmental impacts. In 2022, nearly two-thirds of H Insideome Depot shareholders backed a proposal on deforestation in its supply chains. Home Depot commissioned a third-party assessment and released a report in 2024.
“Taking away the right of shareholders to petition companies about climate change really is taking away another tool … not only from investors, but also from the public, to address the climate issue,” said Timothy Smith, senior policy advisor at the Interfaith Center on Corporate Responsibility, a coalition of faith- and values-based investors."
Dimuthu Attanayake reports for Inside Climate News October 3, 2026.
