A large state public pension fund with 2.7 million shares in Chesapeake Energy is asking investors to urge the company to provide timely disclosure of environmental and climate risks and to be more aware of the effects of global warming.
CalPERS, the country’s largest state public pension fund with nearly $350 billion in total assets filed a proxy notice this week with the Securities and Exchange Commission. It urged shareholders to vote for a shareowner proposal, saying they will benefit if the company provides accurate and timely disclosure surrounding environmental risks and opportunities associated with climate risk.
Shareholders will hold their annual meeting May 18.
“We believe proposal #5 is of particular significance in light of the global consensus regarding climate change and emission reduction targets reflected in the Paris Agreement,” stated CalPERS Investment Director, Simiso Nzima. “The importance of the proposal’s request is also underscored by the final recommendations set forth by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), an international body established by G-20 leaders to develop efficient climate-related financial risk disclosures.”
The pension fund said it believes effective management of environmental factors increase “the likelihood that companies will perform well over the long-term.”
It supports the request of proposal #5 asking for an assessment of the long-term impacts on the company’s portfolio, public policies and technological advances that are consistent with limiting global warming to no more than two degrees Celsius over pre-industrial levels.
“We are hopeful companies will begin to recognize the importance of providing shareowners with a better understanding of how they plan to address climate change consistent with the Paris Agreement,” concluded Nzima.