The California Public Employees' Retirement System (CalPERS) is urging fellow shareowners of the global commodity trading and mining company Glencore Plc. 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 Resolution #16, 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.
In its proxy filing, Glencore's management stated, "The chairman and head of sustainability met with representatives of the coalition prior to the requisition being submitted and expressed their support of the resolution's purpose."
"We are very pleased that Glencore's management supports this resolution," said Anne Simpson, CalPERS Director of Global Governance. "They understand investors need environmental reporting to best understand a company's risks and opportunities."
The resolution highlights 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.
To learn more, view the Glencore Plc. Shareowner Alert (PDF).
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.
