Community, Labor Call on CalPERS to Drop Exxon
FOR IMMEDIATE RELEASE: Monday, March 18, 2024
Contact: Anya Svanoe, asavnoe@calorganize.org, 510-423-2452
Elizabeth Brennan, elizabeth@eabstrategies.com, 213-999-2164
Community, Labor Call on CalPERS to Drop Exxon
In testimony and a press conference outside the CalPERS Board meeting, leaders and pensioners lay out the argument for stronger action against oil and gas companies.
SACRAMENTO – As ExxonMobil doubles down on its lawsuit against shareholders who brought forward a SEC-approved climate-related resolution, community members, pension beneficiaries, and labor leaders called on CalPERS to end its investment with Exxon to protect retirement security and to take action to combat climate change.
“From a finance perspective it just doesn’t make sense to keep investing in fossil fuel companies,” said Tachina Garrett, a leader of the community group ACCE. ACCE is an anchor organization of California Common Good. “Not only is Exxon’s stock price weak and California is suing the company and other major oil companies for decades of deception, Exxon is now taking aggressive action against shareholders trying to raise their voice through legitimate and proper channels.”
Garrett spoke at a press conference in front of the CalPERS headquarters in Downtown Sacramento on the first day of the March meeting of the Board of Trustees and called on Trustees to vote against the Exxon Board of Directors and to refuse to purchase new bonds or share issuances from Exxon.
The actions mark the launch of a campaign by California Common Good, an innovative coalition of labor, community, and environmental groups, to address climate change and invest in California’s communities.
“The health and well-being of California communities is at risk because of climate disruptions. Public pensions can help change the course,” said Allie Lindstrom, senior campaign strategist for the Sierra Club. “Currently CalPERS is invested in companies like Exxon whose activities threaten the health of our planet and economy, putting pensions at risk. Exxon’s most recent lawsuit against shareholders demonstrates that it is not open to negotiation.”
Oil and gas companies are increasingly a risky investment, losing money as compared to the S&P 500 and they are being sued by California and at least 40 other entities for the harm they have caused to Californians and the residents of other states and municipalities.
Most 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 extremely rare and 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.”
In November, CalPERS pledged a commitment to climate policies in order 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.