Q3 closes out this weekand it has been a busy start to the fall season. Climate Week NYC just wrapped, California's SB 253 filing deadline is six weeks away, and regulators on both sides of the Atlantic moved on rules that will shape how companies report and engage shareholders starting in 2027.
As always, there is a lot happening in the governance and sustainability space. Below is a snapshot of the issues and conversations currently top of mind for our team.
If I can answer any specific questions, please do not hesitate to reach out. I would love to hear from you.
— Chad
Our Latest Insights
Check out some of our latest thoughts on today's biggest sustainability issues.
States Are Powering Sustainability and Moving Climate Regulation Forward
While federal climate policy has retreated in 2026, states are continuing to build the regulatory and market infrastructure that will shape corporate climate action. At Climate Week NYC, Governor Newsom announced that California had taken the next formal step toward linking its Cap-and-Invest program with Washington State’s carbon market—expanding on California’s existing joint market with Québec.
The linkage is not yet final: California, Washington, and Québec must complete a joint regulatory process, with operations targeted for 2027. But the direction is significant. A connected three-jurisdiction market would create a larger, more liquid trading pool and reinforce a more durable carbon-price signal for regulated companies.
The announcement is part of a broader state-led trend. California’s climate-disclosure requirements continue to advance, and New York is considering similar legislation. For issuers, state obligations are increasingly the baseline for climate planning—not a temporary stand-in for federal action.
Read our full piece on state-level consolidation here.
The SEC Wants to Scrap the Rules That Put Shareholder Proposals on the Ballot
On September 18, the SEC proposed rescinding Rule 14a-8, which requires companies to include eligible shareholder proposals in proxy materials. Authority would shift to state law and company bylaws instead and the timing is notable: proposal volume was already falling under the current rule, undercutting the case that this fixes an overwhelmed system.
Proposals filed across the Russell 3000 dropped to 622 in 2026, down 20% from 778 in 2025 and roughly flat with 776 in 2024.
Without Rule 14a-8, a shareholder could still pursue a vote directly, but critics estimate the cost of printing and circulating a proposal independently could run as high as $20,000, out of reach for most individual investors.
The public comment period runs 60 days from Federal Register publication, meaning the 2027 proxy season would be the first to operate under any new rule.
THE BOTTOM LINE
We see this as a step backward for shareholder rights, not a fix for an overwhelmed system. Shareholders aren't disengaging, they're sharpening their focus, and governance is where that focus is landing. Removing Rule 14a-8 would cut off that channel at the moment it's being used most deliberately.
Want to talk through what a post-14a-8 shareholder engagement strategy might look like for your company? Or discuss upcoming climate regulations? Contact our team.
Some of the news that we're monitoring on behalf of our clients:
Proxy Advisor Glass Lewis Merges With Clarity AI to Build Sustainability Data and Stewardship Platform
September 24, 2026 |ESG TODAY Glass Lewis and Clarity AI are merging governance and proxy voting expertise with AI-driven sustainability data into one platform. The move doubles down on Europe, home to more than 80% of global sustainable fund assets, as several large U.S. asset managers pull back from external proxy advisors. Governance and sustainability data are converging into a single product.
EU Publishes Final Revised European Sustainability Reporting Standards in Official Journal
September 22, 2026 |ESG TODAY The EU's simplified ESRS is now final. It takes effect November 10 and applies to financial years starting in 2027. The Omnibus I revisions cut roughly 90% of companies out of mandatory scope and trimmed required data points by 61%. Fewer companies have to report, but the bar for those that still do stays high.
EPA Scraps Biden-Era Power Plant Carbon Rules, Moves to Eliminate All Power-Sector GHG Standards
September 16, 2026 | ESG DIVE The EPA finalized the repeal of most greenhouse gas rules for power plants and proposed eliminating what remains, citing a lack of Clean Air Act authority. The agency projects $1.2 billion in annual industry savings; several state attorneys general are preparing legal challenges. A reminder that not every jurisdiction is moving the same direction as this month's other stories.
New EU Anti-Greenwashing Rules Enter Into Force
September 28, 2026 | ESG Today The EU's Empowering Consumers for the Green Transition Directive took effect today. Generic claims like "environmentally friendly" are now banned unless independently verified, offset-based neutrality claims are prohibited, and forward-looking climate pledges need a detailed, third-party-verified implementation plan. Any U.S. company marketing sustainability claims to EU consumers is now in scope, not just companies based in Europe
Disclaimer: The information provided does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.
Third Economy, 370 7th Street, Suite 9, San Francisco, California 94103, +1 415 935 0030
