The SEC Just Made The Case For Divesting From Fossil Fuel Companies Much Stronger

The Securities and Exchange Commission has waded into the debate over what investors can do to stop fossil fuel companies from destroying the Earth’s habitable climate. And in siding with a major oil company, the agency inadvertently strengthened the case for divesting from fossil fuels altogether.

Late last year, Trillium Asset Management, an investment firm that works with environmental groups but also has fossil fuel investments, proposed a shareholder resolution calling for EOG Resources, one of the largest oil producers in the country, to set a target for cutting greenhouse gas emissions. But before shareholders could vote on the proposal, EOG complained to the SEC, requesting approval to ignore the proposal, which it said would “micromanage” the company with a “rigid and time-bound” target.