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The California Public Employees' Retirement System's (CalPERS) climate risk reporting shareowner resolution, Resolution #16, overwhelmingly passed today at the annual shareowner meeting of Glencore Plc. The resolution, which was supported by company management, requires the global commodity trading and mining company to report on environmental risks and opportunities associated with climate change.
The resolution was co-filed by CalPERS and the Aiming for A coalition of asset owners assembled by CCLA Investment Management, a United Kingdom-based investment manager for charities, religious organizations, and the public sector.
"We welcome Glencore's support for climate risk reporting," said Anne Simpson, CalPERS Investment Director of Global Governance. "The company joins the growing roster of leaders in the energy sectors most impacted by the Paris Agreement. The Paris plan charts the transition to a low-carbon economy, which is needed in order to limit global warming to less than 2 degrees. As long-term investors and prudent fiduciaries, we need new risk reporting to ensure company strategy is aligned with that transition. The result at Glencore shows that we have a new level of consensus between investors and companies: climate risk reporting makes business sense."
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' Investment Beliefs (PDF), the System believes the 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 $290 billion. For more information, visit www.calpers.ca.gov.
