CalPERS' Climate Risk Reporting Proposal Passes at Exxon Mobil
May 31, 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's (CalPERS) climate risk reporting shareowner resolution passed today at the annual shareowner meeting of Exxon Mobil.
The resolution requires the international oil and gas company to report on environmental risks and opportunities associated with climate change. It was co-filed by CalPERS and other investors, including New York State Common Retirement Fund and Church of England.
"This win is a major sign of progress," said Anne Simpson, CalPERS investment director, sustainability. "Shareholders have made it clear that they understand the risk that climate change represents to the business. It is now up to Exxon to integrate the climate risk reporting into practice."
The proposal at Exxon Mobil calls for an assessment of the company's portfolio under the "2 Degree Scenario." This assessment will:
- Be added to existing reporting 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 CalPERS' Investment Beliefs (PDF), the System believes 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 $322 billion. For more information, visit www.calpers.ca.gov.