SEC Stands Behind Decision Blocking Climate Vote at Driller EOG

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By Andrea Vittorio

The Securities and Exchange Commission is standing behind its decision to block a shareholder vote on climate change at oil explorer EOG Resources Inc.

EOG had gotten the commission’s approval to leave off its ballot a proposal from Trillium Asset Management seeking a carbon-cutting goal. Trillium, a socially conscious investment firm managing $2.5 billion in assets, took issue with that decision and asked the SEC to reconsider.

The commission reviewed Trillium’s request and found “no basis” for reconsideration, according to a March 12 letter. Data compiled by Bloomberg Law show such reconsideration requests are extremely rare and usually aren’t granted.

EOG successfully convinced SEC staff that letting shareholders vote on adopting a carbon target would encroach on management decisions. Trillium said the commission’s verdict was “out of step” with the recent groundswell of shareholder support for corporate climate action.

To contact the reporter on this story: Andrea Vittorio in Washington at avittorio@bloomberglaw.com

To contact the editor responsible for this story: Fawn Johnson at fjohnson@bloomberglaw.com

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