Elizabeth Brennan, elizabeth@eabstrategies.com, 213-999-2164
LOS ANGELES – An unprecedented coalition that includes unions representing a majority of current workers invested in CalPERS, the second largest union representing CalSTRS members and leading environmental groups in California are calling on CalPERS and CalSTRS, the two largest public pension funds in California, to hold ExxonMobil accountable following the company’s lawsuit against shareholders.
Specifically, unions, community groups and environmental groups are asking CalPERS and CalSTRS to vote against the Exxon Board of Directors at the May 29 shareholder meeting, first by filing exempt solicitations immediately. The groups are also calling on the funds to begin a process for exiting Exxon investments, starting with ending all new investments in bonds. CalPERS has invested over $200 million in Exxon corporate bonds - the vast majority will not mature until 2049 and 2050 - the same year CalPERS has committed to achieving net zero emissions.
“Climate change poses an existential threat to pension benefits. Unions have fought hard to win and maintain retirement security for members. Still, failure to address climate change and continued investment in fossil fuels undermines pension funds' strength, predictability, and ability to fulfill responsibilities to beneficiaries,” reads the letter from California Common Good.
The letter is signed by organizations representing 3 million people including SEIU Local 1000, the California Faculty Association, California State University Employees Union, SEIU Locals 721, 1021, 521, 221 and 99, AFSCME Local 3299, United Teachers Los Angeles (UTLA), California Faculty Association, California Federation of Teachers along with the Sierra Club, California Environmental Voters, Alliance of Californians for Community Empowerment (ACCE), Courage California and Greenpeace.
“We know that climate change poses a great risk to our communities and our way of life,” said Bill Hall, Board Chair of SEIU Local 1000, the largest union of State employees in California. “It means business as usual is unacceptable, and continued investment in ExxonMobil is too great a risk to the retirement security of our members—hardworking Californians.”
In March, following testimony from CalPERS’ beneficiaries in front of the Board of Directors, over 100 community and labor members rallied in front of CalPERS Sacramento headquarters to denounce Exxon for its lawsuit against shareholders who brought forward a climate-related resolution. Members of the CalPERS Board of Directors responded by raising serious concerns about continuing to invest in Exxon.
Theresa Taylor, CalPERS President, said during the March Board meeting: “I don't think engaging with [Exxon] will work.”
“Exxon’s actions have shown that it is committed to a business model that is harming the environment and communities on the frontlines of climate change,” said Jakob Evans, an organizer with Sierra Club California. “CalPERS must hold Exxon accountable and reject any further investments in a corporation that has sued its own shareholders and continues to pollute the environment. Divesting from Exxon will ensure that California’s public employees and future generations of Californians can access and enjoy the state’s natural beauty free from the harms of oil and gas pollution.”
ExxonMobil is the largest fossil fuel company in the United States and the largest non-governmental oil producer in the world. Recently, ExxonMobil sued two shareholders in an attempt to block their shareholder proposal urging the company to accelerate the reduction of greenhouse gas emissions. This type of legal action is extremely rare. The Interfaith Center on Corporate Responsibility, which represents investors and institutions with some $4 trillion in total assets, noted that this type of legal action is a “serious threat to shareholder rights and a clear message that the company is seeking to shut down any debate by its shareholders on actions needed to address climate risk.”
At the end of April, Wespath Benefits and Investments and Mercy Investment Services co-filed a proxy exempt solicitation with the U.S. Securities and Exchange Commission (SEC) urging investors to vote against two director nominees at ExxonMobil's May shareholder meeting.
Oil and gas companies are highly volatile and risky investments, and continued fossil expansion undermines global climate goals and increases risks to the economy. California and at least 40 other states and municipalities are suing oil and gas companies for the harm they have caused residents.
In November, CalPERS pledged a commitment to climate policies to best protect retirement security for its beneficiaries. Their proposal included $100 billion in sustainable investments that the coalition believes should include investments in California’s communities of color and ending investments with companies that harm our communities.
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About California Common Good:
California Common Good (CCG) is an innovative coalition of labor, community, and environmental groups anchored by the Alliance of Californians for Community Empowerment (ACCE), United Teachers Los Angeles, and AFSCME 3299. CCG is advancing coalition campaigns for housing justice, workers' rights, and climate action, with an emphasis on the interests and needs of low-income and working-class communities of color. Central to our strategic approach is working to hold big corporations accountable to the common good.
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.