CalPERS Urges Investors to Vote for Climate Change Reporting at Exxon Mobil
May 30, 2017
Communications & Stakeholder Relations
Brad W. Pacheco, Deputy Executive Officer
Wayne Davis, Chief, Office of Public Affairs
Contact: Megan White, Information Officer
SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) is calling fellow shareowners of Exxon Mobil, the international oil and gas company, to vote in favor of a proxy ballot resolution requiring the company to report on environmental risks and opportunities associated with climate change.
The resolution, formally titled Proposal #12, was co-filed by CalPERS and other investors, including New York State Common Retirement Fund and Church of England. The proposal will be voted on at Exxon Mobil's Annual General Meeting on Wednesday, May 31.
"Exxon is a leading voice in the business community supporting the Paris climate change goals to limit global warming to 2 degrees," said Anne Simpson, CalPERS investment director, sustainability. "We applaud their efforts and encourage Exxon directors to engage with shareowners. It's time for Exxon to provide investors with the risk reporting that backs up their welcome policy position."
The proposal to Exxon Mobil would request an assessment of the company's portfolio under the "2 Degree Scenario." This assessment would:
- Enhance existing reporting by analyzing impacts on oil and gas reserves under the globally agreed upon two degree target
- Look at the long-term impacts of technological advances and global climate change policies
- Examine the resiliency and financial risks of the company's portfolio through 2040 and beyond
CalPERS believes companies should provide accurate and timely disclosure of environmental risks and opportunities associated with climate change. As outlined in our Investment Beliefs (PDF), we believe effective management of environmental factors, including those related to climate change risk, increase 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 more than 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 $322 billion. For more information, visit www.calpers.ca.gov.