Despite longstanding pressure from shareholders for public companies to disclose political spending, the SEC recently removed a plan to consider the rule from its agenda.
According to the New York Times there is increasing evidence so suggest that public companies intentionally keep political spending private to avoid alienating shareholders.
The SEC initially considered the ruling after a group of institutional investors, including UCF, submitted a letter in 2011 outlining their concerns. While UCF was encouraged and consequently reported on SEC’s positive response earlier this year, we are now disappointed it is no longer a priority.
UCF is particularly concerned that undisclosed political spending could lead to funding legislation that furthers the impacts of climate change, as well as the power of oil and gas companies. We plan to formally express this concern to the SEC. Read the full story here.
Here is an opinion piece that spells out the connection between climate change and the SEC’s recent decision.