CalPERS' Climate Risk Reporting Proposal Overwhelmingly Passes at Rio Tinto Plc
May 5, 2016
Communications & Stakeholder Relations
Brad W. Pacheco, Deputy Executive Officer
Wayne Davis, Chief, Office of Public Affairs
Contact: Joe DeAnda, Information Officer
SACRAMENTO, CA - The California Public Employees' Retirement System's (CalPERS) climate risk reporting shareowner resolution, Resolution #17, overwhelmingly passed today at the annual shareowner meeting of Rio Tinto Plc. The resolution, which was supported by company management, requires the global mining company to report on environmental risks and opportunities associated with climate change.
CalPERS co-filed the resolution along with a coalition of asset owners assembled by CCLA Investment Management, which is based in United Kingdom and manages investments for charities, religious organizations, and the public sector.
"Rio Tinto joins the growing number of global companies agreeing to provide investors with risk reporting on climate change," said Anne Simpson, CalPERS Investment Director of Global Governance. "We applaud Rio Tinto and others who are joining with shareowners to move this vitally important issue forward now that we have the Paris Agreement to limit global warming. Climate risk is a mainstream investment issue, and needs to be managed. You can’t manage what you can’t measure, so new risk reporting is vital."
The resolution included five specific areas:
- Ongoing operational emissions management
- Asset portfolio resilience to the International Energy Agency's scenarios
- Low-carbon energy research and development and investment strategies
- Relevant strategic key performance indicators and executive incentives
- Public policy positions relating to climate change
CalPERS believes companies should provide accurate and timely disclosure of environmental risks and opportunities associated with climate change. As outlined in CalPERS Beliefs (PDF), the effective management of environmental factors, including those related to climate change risk, increases the likelihood that companies will perform well over the long-term.
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.8 million members in the CalPERS retirement system and administers benefits for nearly 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS' total fund market value currently stands at approximately $290 billion. For more information, visit www.calpers.ca.gov.
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