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Article

13 Dec 2019

Author:
Fiona Reynolds, Principles for Responsible Investment

Commentary: SEC proposals undermine shareholder engagement & voting power

"Could corporate lobbying pose a significant threat to responsible investment?", 10 December 2019

...[R[ecent Securities and Exchange Commission’s (SEC) proposals... create new roadblocks for investors seeking to use shareholder proposals and voting processes to signpost critical ESG issues with corporate leaders... SEC Commissioner Rob Jackson commented: “Holding executives accountable for the way they run America’s corporations is difficult and expensive, and investors lack the time and money to do it. That’s why investors use proxy advisors, who make recommendations about how shareholders should vote. Today’s proposal imposes a tax on firms who recommend that shareholders vote in a way that executives don’t like.”... The proposed rules stand in direct contradiction of the SEC’s stated purpose, to protect investors... They are... a form of corporate voter suppression to disenfranchise investors who seek to actively engage with companies on ESG matters, climate risks, sustainability and long-term value creation.