The resolution requires the international oil and gas company to report on environmental risks and opportunities associated with climate change. It was co-filed by CalPERS and other investors, including New York State Common Retirement Fund and Church of England.
"This win is a major sign of progress," said Anne Simpson, CalPERS investment director, sustainability. "Shareholders have made it clear that they understand the risk that climate change represents to the business. It is now up to Exxon to integrate the climate risk reporting into practice."
The proposal at Exxon Mobil calls for an assessment of the company’s portfolio under the "2 Degree Scenario." This assessment will:
- Be added to existing reporting analyzing impacts on oil and gas reserves under the globally agreed upon two degree target
- Look at the long-term impacts of technological advances and global climate change policies
- Examine the resiliency and financial risks of the company’s portfolio through 2040 and beyond
CalPERS believes companies should provide accurate and timely disclosure of environmental risks and opportunities associated with climate change. As outlined in CalPERS’ Investment Beliefs (PDF), the System believes the effective management of environmental factors, including those related to climate change risk, increases the likelihood that companies will perform well over the long-term.
