Following Calls from Unions, Community Organizations, CalPERS Pledges to Vote Against ExxonMobil Board of Directors
FOR IMMEDIATE RELEASE: Tuesday, May 21, 2024
Contact: Elizabeth Brennan, elizabeth@eabstrategies.com
Following Calls from Unions, Community Organizations, CalPERS Pledges to Vote Against ExxonMobil Board of Directors
Leading organizations continue to call for an end to any new bond investments in Exxon.
LOS ANGELES – CalPERS, the largest pension fund in the U.S., announced Monday that it filed an exempt solicitation with the Securities and Exchange Commission (SEC) calling on shareholders of Exxon Mobil Corporation (XOM) to vote against the entire slate of board of director candidates at the annual general meeting on May 29.
This filing comes after an unprecedented coalition of labor, community and environmental organizations submitted an open letter to CalPERS management and Board of Trustees that called on the pension fund to vote against the Exxon Board of Directors.
The groups are also calling on the fund to begin a process for exiting Exxon investments, starting with ending all new investments in bonds issued by the company. CalPERS has over $200 million invested in Exxon corporate bonds - the vast majority of which will not mature until 2049 and 2050 - the same year CalPERS has committed to achieving net zero emissions.
“As an investment leader, CalPERS’ actions to protect retirement security and address climate change are critical,” said Christina Livingston, executive director of Alliance of Californians for Community Empowerment (ACCE). “CalPERS’ vote will send a message to Exxon, other fossil fuel companies like Chevron, and to other corporations that they must be accountable to shareholders and if they are not there will be serious consequences.
“CalPERS touts its willingness to engage with corporate bad actors and we commend that, but these bad actors must know that they can expect more than just a slap on the wrist. When a corporation’s actions put the retirement security of millions of people at risk, we cannot continue to fund that company’s expansion.”
California Common Good, which coordinated the collective call to CalPERS, is planning to attend the next CalPERS Board of Directors meeting June 10. The letter, which is addressed to staff of both CalPERS and CalSTRS, 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, ACCE, Courage California and Greenpeace.
Pressure Building to Hold Exxon Accountable
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.”
In May, New York State Common Retirement Fund, announced it will vote against all but two of Exxon Mobil Corp.'s directors. 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. And, proxy advisor, Glass Lewis, recommended that investors vote against Joseph Hooley, the lead independent director for Exxon.
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.