The U.S. Securities and Exchange Commission (SEC) has denied Alphabet’s attempt to omit a shareholder proposal calling for enhanced racial and gender board diversity reporting from its 2022 proxy materials ahead of the technology giant’s upcoming June 1 annual meeting.

The December 20 proposal, filed by Arjuna Capital on behalf of David Boghossian and the Sisters of St. Francis Charitable Trust, urges Alphabet to report annually on its policies and practices to help ensure its board attains racial and gender representation that is better aligned with the demographics of its customers.

The report should also include details on the progress and challenges in meeting racial and gender board diversity targets, as well as strategies and practices deployed to increase the diversity of Alphabet’s board candidates.

Arjuna stated that Alphabet’s board diversity is “largely disproportionate from its customer base,” only comprised of 27% women and 18% underrepresented minorities. In comparison, the demographic makeup of the U.S., used as a proxy for its customer base, is comprised of 51% women and 32% underrepresented minorities.

The proponent concluded that a board more reflective of Alphabet’s customer base would “more astutely minimize business risk, maximize opportunity, and increase shareholder value.”

On February 1, Alphabet sought confirmation from the SEC that the regulator would not take action if it omitted the proposal from its 2022 proxy materials on the grounds that the company had already substantially implemented the proposal.

Alphabet publicly discloses its director selection process and qualifications annually in its proxy statement, which include descriptions of the policies in place and mechanisms the board uses to incorporate diversity into the candidate evaluation and nomination process.

On April 11, the SEC responded that it did not agree that Alphabet’s existing public disclosures “substantially implement” the proposal.

Alphabet also sought to exclude a proposal, filed by Dale Wannen, requesting that the board create a committee on environmental sustainability to oversee and review policies and provide guidance on matters relating to environmental sustainability. This no-action request was also denied.