The U.S. Securities and Exchange Commission's Division of Corporation Finance recently released Staff Legal Bulletin No. 14I, which, among other things, addresses topics related to requests by public companies to exclude shareholder proposals from their proxy statements based on the "ordinary business" exception. Early experience with SLB 14I suggests that companies may face challenges using that exception to exclude proposals related to climate risk and environmental issues.
In an era of more frequent and severe weather-related disasters, property insurance will continue to be an important tool for companies to mitigate property and financial risk. As insurers seek to adjust to what may be the "new normal," companies must be vigilant in reviewing proposed renewal policies for changes that could translate into reduced protection.
Despite the prolonged downturn in the "yieldco" market, these renewable energy providers may still play a key role in renewable energy financing. First, institutional investors, notably insurance companies and pension funds, have filled the void left by abating investor interest in yieldcos. Second, yieldcos present acquisition opportunities for renewable energy companies.