—SEC chair Paul Atkins has urged the commission to revisit rules requiring companies to include shareholder proposals on ESG issues in proxy statements.
Speaking at the University of Delaware, Atkins said his Shareholder Proposal Modernization initiative aims to reduce political debates in shareholder meetings and refocus on essential corporate matters like director elections.
He argued that many ESG proposals address topics unrelated to a company’s core business, creating unnecessary costs and distractions for management. Atkins asked SEC staff to review whether Rule 14a-8, first adopted in 1942 to enable shareholder input, remains appropriate in light of modern communication tools.
Atkins also suggested that Delaware-incorporated companies could exclude shareholder proposals deemed improper if backed by legal opinions and SEC review.
Sustainable investing groups have strongly opposed the idea. Advocacy organization Ceres warned that weakening the shareholder proposal process would undermine decades of progress in responsible investing and corporate accountability.
—Attorneys General in 16 states have challenged claims by Amazon, Google, Meta and Microsoft about their use of renewable energy in a probe that could reframe corporate climate communications.
In a September 24 letter led by Montana Attorney General Austin Knudsen, the attorneys demanded detailed explanations of how the tech firms calculate emissions reductions tied to electricity. They focused on the use of ‘unbundled’ renewable energy certificates (RECs) which allow companies to claim renewable credentials without physically sourcing or supporting those energy projects.
The states warned that these accounting practices may mislead consumers and undermine grid stability by discouraging investment in dependable power infrastructure. They argue that the use of RECs as an accounting tool rather than proof of actual green energy sourcing weakens trust in corporate sustainability pledges.
Amazon and Microsoft declined to comment while Google and Meta have not yet responded. The companies must answer by October 27.
The inquiry reflects intensifying scrutiny of greenwashing in the tech sector and could prompt more stringent rules on how environmental claims are made.
—European Union lawmakers have agreed to slash the scope of two major sustainability laws following heavy pressure from the bloc’s largest nations.
As reported by Bloomberg (paywall), the Parliament’s Committee on Legal Affairs backed proposals to tighten thresholds for coverage under CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD). Under the new plan, CSRD will apply only to companies with at least 1,000 employees and €450 mn in turnover. CSDDD will be confined to firms with at least 5,000 employees and €1.5 bn in turnover.
The revised rules would also drop a common civil-liability clause under CSDDD, easing legal exposure for businesses. Financial holdings and listed subsidiaries will be exempt from CSRD obligations.
Supporters say the changes relieve undue burdens on companies and protect Europe’s industrial competitiveness. Critics warn the rollbacks threaten transparency and weaken Europe’s climate leadership.
Next steps include a full vote in Parliament and negotiations with EU member states.
—The US Chamber of Commerce has filed a lawsuit challenging President Donald Trump’s new $100,000 fee on H-1B visas for highly skilled foreign workers.
As reported by Reuters (paywall), the Chamber – which represents around 300,000 businesses – argues that Trump has exceeded his authority and disrupted a visa system established by Congress. Under the H-1B program, 65,000 visas are issued each year in addition to 20,000 for advanced‐degree holders.
Normally employers pay between $2,000 and $5,000 in application fees. The new fee would force firms to choose between sharply higher labor costs or hiring fewer foreign specialists.
The Chamber has asked the court to block enforcement of the measure. Legal challenges have also emerged in California involving unions, employers and religious groups.
The White House has not yet responded to the lawsuit. This dispute could have major implications for how the US manages immigration and access to global talent.
—Guardian Capital Group is pushing ahead with a plan to go private under a proposed arrangement with Desjardins Global Asset Management. Proxy advisory firms ISS and Glass Lewis have both recommended that shareholders vote in favor of the transaction.
The deal values Guardian shares at C$68 ($48.40) in cash per share and carries an estimated total enterprise value of C$1.67 bn. Under the plan, certain investors, designated ‘rollover shareholders’, would exchange part of their holdings for shares in Desjardins rather than full cash.
Guardian’s board and its independent committee unanimously support the deal and believe it is fair and in the best interests of shareholders. The company is to hold a special meeting of shareholders next week October 23, with a proxy voting deadline of October 21.
This transaction follows Desjardins’ broader effort to grow its asset management footprint. After closing, Guardian will be delisted from the Toronto Stock Exchange.
—The global financial stability watchdog has warned that regulators are leaving too many gaps and inconsistencies in rules for the cryptocurrency market. According to the Financial Times (paywall), The Financial Stability Board (FSB) said crypto asset providers and stablecoin issuers could exploit uneven regulations by choosing the most lenient jurisdictions.
John Schindler, FSB secretary-general, said differing rules risk amplifying shocks in the market, a concern he called unavoidable as such dynamics are already emerging. The FSB highlighted the differing global approaches: the US has adopted a crypto-friendly stance, many European countries are more cautious and China has banned most crypto activities, while others like Mexico and India have yet to regulate.
Bank of England governor Andrew Bailey, who chairs the FSB, noted some countries are taking a ‘let a thousand flowers bloom’ approach but stressed the need for a harmonised regulatory framework.
The FSB’s review of nearly 40 jurisdictions found significant gaps that could threaten financial stability, especially regarding crypto leverage and borrowing. Only Bermuda and the Bahamas have comprehensive rules on crypto lending. Without such safeguards, risks of market failures could rise.
The FSB called for better data collection and stronger global cooperation to prevent regulatory arbitrage among crypto firms.