Ginny Roscamp, Deputy Press Secretary, Fossil-Free Finance, Sierra Club, ginny.roscamp@sierraclub.org, 415-508-8498 (Pacific Time)
BOSTON, Massachusetts — The Massachusetts Pension Reserves Investment Management Board (MassPRIM) has updated its proxy voting guidelines to better inform its shareholder voting practices surrounding issues related to climate, sustainability, biodiversity, and executive pay. The new policies can be viewed on the MassPRIM website under the “PRIM Board Governance” section here.
The update comes just one month after the state received a C+ grade on its proxy voting record, proxy voting guidelines, and voting transparency in the “Hidden Risks in State Pensions” report and scorecard, which was published by the Sierra Club, Stand.earth, and Stop the Money Pipeline.
The report revealed that even in states with progressive financial leadership, public pensions are failing to take the steps necessary to tackle the climate crisis and reduce climate-related financial risk, which not only makes addressing climate change harder, but also puts the hard-earned savings of millions of Americans at risk.
Because they are responsible for managing investments over a long-term horizon, pension funds should be among the investors most alarmed about the economic risk associated with the climate crisis. And while some pensions have taken public strides forward, such as announcing net-zero pledges, investing in climate solutions, or defending the right to invest responsibly, many pensions are failing to address climate-related financial risks. This includes incorporating these risks into their proxy voting guidelines, a key tool for investors to encourage responsible corporate governance and corporate behavior.
In response to the announcement, the Sierra Club issued the following statements:
“MassPRIM’s updated proxy voting guidelines complement already strong climate and emissions policies with new language on biodiversity risks, which makes them among the first to incorporate this critical topic into their proxy voting guidelines, helping to cement MassPRIM’s leadership amongst peers. However, the fund still has a long way to go in codifying policies addressing environmental justice and Indigenous rights. We hope to see support from MassPRIM on related resolutions in 2024,” said Allie Lindstrom, Senior Strategist in the Sierra Club’s Fossil-Free Finance campaign.
“We appreciate MassPRIM’s commitment to engaging on climate, however, we recognize that in order to stave off the worst effects of the climate crisis, we must also strongly consider environmental justice, indigenous rights, systemic risks, political contributions, and biodiversity,” said Vick Mohanka, Director of the Sierra Club's Massachusetts Chapter.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.