The federal district court for the District of Montana ruled that a public utility company could omit from its proxy materials a shareholder proposal requesting that the company cease coal-fired generation of electricity at a power plant and replace it with renewable energy sources and energy storage technologies by the end of 2025. The court agreed with the company that the proposal could be excluded pursuant to the Securities and Exchange Commission’s rules for shareholder proposals because the proposal impermissibly interfered with a matter relating to the company’s “ordinary business operations.” The court concluded that although the proposal raised “sufficiently significant social policy issues,” it would have to focus on “something larger than shutting down a specific plant by a specified target date” in order “to transcend the ordinary business operations” of the utility company.

Lawsuit seeking to bar the defendant from excluding the plaintiff's shareholder proposal requesting that the defendant cease coal-fired power generation.

Tosdal v. NorthWestern Corp.

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Montana Federal Court Rejected Shareholder’s Bid to Have Utility Include Proposal for Cessation of Coal-Fired Generation in Proxy Materials

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Actions to reduce emissions in energy generation and supply.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

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Montana Federal Court Rejected Shareholder’s Bid to Have Utility Include Proposal for Cessation of Coal-Fired Generation in Proxy Materials

Target

Policy instrument

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector