The California Public Employees' Retirement System (CalPERS) is calling fellow shareowners of Occidental Petroleum, 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 #5, was co-filed by CalPERS and other investors, including Wespath Investment Management and the Nathan Cummings Foundation, plus New York State and Connecticut pension funds. The proposal will be voted on at Occidental Petroleum's Annual General Meeting on Friday, May 12.
"This is about transparency and sustainability," said Anne Simpson, CalPERS investment director, sustainability. "CalPERS is calling on companies like Occidental to inform their investors about how they are positioned for the transition to a low carbon energy future."
The proposal to Occidental Petroleum would request an assessment of the company's portfolio under the "2 Degree Scenario." This assessment would include:
- Long-term impacts due to climate change;
- Short and long-term financial risks of a lower carbon economy;
- Evaluation of resources based on changes to demand and pricing; and
- 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 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 $320 billion. For more information, visit www.calpers.ca.gov.
