Utility CEOs Try To Rob Shareholders Of Rights To Express Climate Concerns
By David Pomerantz for Energy and Policy Institute - The Business Roundtable, a group of CEOs that lobbies for policies that support the fossil fuel industry, is attempting to restrict shareholders’ rights as utilities and fossil fuel companies face increasing scrutiny from investors over climate change. Fossil fuel and utility CEOs, facing unprecedented levels of activism from shareholders who are worried about the risks posed to their investments by climate change, have responded by trying to pass legislation that would curtail investors’ rights to register their concerns. The main purpose of The Financial CHOICE Act is to gut the consumer protections passed by the Dodd-Frank law of 2010, but a section of the bill would produce a significant change in what kind of shareholders are able to file resolutions for changes in the company. Currently, any shareholder that owns 1 percent of a company, or $2,000 worth of shares – hardly a paltry sum, but one that is within the realm of possibility for many investors – is able to file shareholder resolutions calling on the company’s management to make changes. The resolutions are generally not binding, but when they garner significant support, say over 20%, management tends to take them as serious signals of shareholder sentiment, and often respond accordingly.