The California Public Employees' Retirement System (CalPERS) today supported a shareowner coalition-filed resolution seeking greater climate change-related reporting at energy giant BP’s annual shareowner meeting. Company management at BP also supported the measure, which went on to be adopted by a majority of shareowners.
"Being aware of all the risks and opportunities that exist within a company is critical for investors," said Anne Simpson, CalPERS Senior Portfolio Manager and Director of Global Governance. "This is a major step toward better climate change reporting and shows the impact of thoughtful engagement with companies. BP's leadership in supporting the resolution is commendable and should be emulated by other energy companies."
The measure, Resolution 25 on the proxy ballot, filed by a coalition of shareowners assembled by CCLA Investment Management, asks BP to report on the risks and opportunities associated with climate change through routine annual disclosures. Specifically, the resolution highlights five areas:
- Ongoing operational emissions management
- Asset portfolio resilience to post-2035 scenarios
- Low carbon energy research and development, and investment strategies
- Strategic key performance indicators and executive incentives
- Public policy interventions
Consistent with CalPERS' Investment Beliefs and Global Governance Principles, the Fund believes companies should provide accurate and timely disclosure of environmental risks and opportunities associated with climate change.
In addition to publicly supporting the measure, CalPERS filed a solicitation with the U.S. Securities and Exchange Commission, urging other shareowners to support Resolution 25, and spoke in person today at the annual meeting in London, voicing support for the measure and commending BP's management for doing the same.
CalPERS is also part of the Ceres-led Carbon Asset Risk Initiative, a coalition 70 global investors managing $4 trillion of collective assets that calls on the largest oil and gas, coal, and electric power companies to assess and mitigate wide-ranging risks that climate trends pose to their business strategies.
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 1.7 million members in the CalPERS retirement system and administers benefits for 1.4 million members and their families in our health program. CalPERS' total fund market value currently stands at approximately $305 billion. For more information, visit www.calpers.ca.gov.
