Following Calls from Unions, Community Organizations; Major Investors Cast Votes Against ExxonMobil Board of Directors
FOR IMMEDIATE RELEASE: Wednesday, May 29, 2024
Contact: Elizabeth Brennan, elizabeth@eabstrategies.com
Following Calls from Unions, Community Organizations; Major Investors Cast Votes Against ExxonMobil Board of Directors
Leading organizations continue to call for an end to any new bond investments in Exxon.
LOS ANGELES – Major pension funds joined with other investors to cast votes against the members of ExxonMobil’s Board of Directors at the corporation’s Annual General Meeting (AGM) Wednesday after a growing coalition of unions, environmental and community groups called on two of the largest pension funds in the U.S. to hold Exxon accountable to protect retirement security.
CalPERS and CalSTRS announced they would vote against the re-election of Lead Independent Director Joseph L. Hooley and Chairman and CEO Darren Woods and other Exxon directors. Exxon is currently suing shareholders after they brought forward a resolution related to the climate.
The coalition of organizations, California Common Good, is also calling on both funds 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.
“CalPERS is a leader among investors on climate issues and that leadership is critically important to protecting the retirement security of beneficiaries. Exxon has failed every test related to the climate and shareholder rights and therefore continued investment in the corporation puts retirement security at risk,” said David Green, president of SEIU Local 721, which represents public sector employees in Los Angeles County including CalPERS’ beneficiaries.
“We applaud both CalPERS and CalSTRS for their leadership and encourage both funds to lead by example with other investors to cease purchasing Exxon or other companies bonds who build new fossil fuels.”
Pressure Building to Hold Exxon Accountable
In May, an unprecedented coalition of labor, community and environmental organizations submitted an open letter to CalPERS and CalSTRS management and Boards of Trustees that called on the pension funds to vote against the Exxon Board of Directors. 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, ACCE, Courage California and Greenpeace. Later in May, both funds pledged to vote against members of the Exxon board of director candidates at the annual general meeting.
Influential figures and organizations, including proxy advisor Glass Lewis, California Treasurer Fiona Ma, and the three largest public pension funds (NYSLRS, CalSTRS, and and CalPERS), as well as eight state treasurers, one state comptroller, one city comptroller, and trustees of three union pension funds including the country’s biggest union federation’s (AFL-CIO) staff retirement plan, also urged shareholders to vote against key board members, particularly Lead Independent Director Joseph Hooley and CEO Darren Woods. They also called on major asset managers like BlackRock, Goldman Sachs, and JP Morgan Chase to support investor rights and demand greater accountability from Exxon.
California Common Good, which coordinated the collective call to CalPERS, is planning to attend the next CalPERS Board of Directors meeting June 10. 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.
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.