The Hidden Risk in State Pensions
The Hidden Risk in State Pensions
Our annual report & interactive tracker analyzes how major U.S. public pensions respond to the climate crisis through their proxy voting policies and practices at corporate annual meetings.
33
Trillions
invested in companies worldwide
Read the report
Our annual report analyzes the proxy voting guidelines, proxy voting records, and voting transparency of dozens of major public pensions in the U.S. Read the press release, explore the report, and read the model proxy voting guidelines.
Explore the tracker
See how each pension's proxy voting guidelines stack up by exploring the data in our interactive tracker, which is updated when pensions change their guidelines or publish new information. Learn more.
Annual meetings are critical to influence corporate behavior
Proxy voting is a key tool for investors to encourage responsible corporate behavior. Each year, major corporations hold annual shareholder meetings to vote on important issues from director elections to environmental and social risks. Investors have the opportunity to weigh in through proxy voting.
For pensions — some of the world’s largest investors — these meetings are a vital chance to set expectations for good corporate behavior, including tackling climate change and preparing for its economic impacts. The Sierra Club regularly analyzes major public pensions’ proxy voting guidelines — the policies directing how they vote — to see which are leading or lagging on climate action.
Pensions' proxy voting strategies fail to address climate risks
Pensions invest across the economy and focus on long-term growth for current and future retirees. Because they are so diversified, their performance depends on the overall health of the global economy, making pensions vulnerable to widespread risks like climate change and biodiversity loss. Climate change is a "systemic risk" affecting many sectors at once through extreme weather, unsafe working conditions, and failing crops. These impacts hurt businesses, slow growth, and reduce returns, putting millions of people’s retirement savings at risk.
Today's investment strategies fail to address these risks. Pension funds must act to protect portfolios and support a stable future. Proxy voting is a key tool to push companies to cut emissions and support a just transition to clean energy, helping reduce threats to the economy. To safeguard long-term value, pensions must address systemic risks like climate change across their portfolios.
Pensions can push companies to secure a better future for retirees
The Sierra Club is urging public pensions to take stronger climate action to protect members’ retirement savings and futures. A key step is urging pensions to adopt tougher proxy voting guidelines to push companies to:
- Demand real climate action: Go beyond gathering emissions data by calling on companies to cut emissions and share plans for how their businesses align with the Paris Agreement.
- Hold leaders accountable: Boards must address climate risks and the energy transition. Replace directors who fail to act with those committed to real action.
- Look beyond emissions: Protect nature and biodiversity, and ensure a just transition for workers and communities impacted by the clean energy shift.
By using their voting power, pensions can push companies to act — securing a safer, more stable future for retirees.