Ginny Roscamp, Deputy Press Secretary, Federal Communications, Sierra Club, ginny.roscamp@sierraclub.org
MONTPELIER, Vermont — The Vermont Pension Investment Commission (VPIC) has updated its proxy voting guidelines to better inform its shareholder voting practices. The new Global Proxy Voting Policy can be viewed on VPIC’s Investment Policies page.
VPIC’s updated guidelines emphasize the role of proxy voting in addressing systemic risks posed by climate change and strengthened expectations of public companies to disclose and address risks. Updated policies expand on climate policy expectations, biodiversity, and the human impacts of climate change.
The update comes three months after the state received a B grade on its proxy voting guidelines in the Sierra Club’s annual “Hidden Risk in State Pensions” report and scorecard. VPIC received a B for comprehensive proxy voting guidelines that lacked some specific policies on biodiversity and other issues, which have been addressed in this latest update.
In response to the announcement, the Sierra Club and Third Act issued the following statements:
“Most public pensions are failing to take the steps necessary to tackle the climate crisis and reduce climate-related financial risk, which not only makes addressing climate change more challenging but also puts the hard-earned savings of millions of Americans at risk. By updating its proxy voting guidelines to better address systemic risks, like climate change and biodiversity loss, VPIC stands out as a leader among pensions across the US in protecting its public workers’ savings from the economic impacts of climate change. This is an important step as pensions begin casting votes on shareholder proposals this spring, and we hope to see other pensions follow Vermont’s lead in holding corporations accountable for their climate impacts,” said Allie Lindstrom, Senior Strategist in the Sierra Club’s Sustainable Finance campaign.
“Third Act Vermont has been working closely with VPIC and the Vermont Treasurer's Office to support VPIC's efforts to decarbonize its portfolio and ensure its investments are in line with Vermont values. We are very pleased VPIC has modified its proxy voting standards to more effectively influence the marketplace to lower carbon emissions. These changes reflect the desire of Vermonters to see their pension investments working not only to produce good returns, but also to reduce our carbon footprint,” said David McColgin, Co-facilitator of Third Act Vermont.
BACKGROUND
Because they are responsible for managing investments over a long-term horizon, pension funds should be among the investors most alarmed about the economic risk associated with the climate crisis. The “Hidden Risk in State Pensions” report reveals that while some pensions like VPIC have taken public strides forward, many pensions are failing to address climate-related financial risks. This includes incorporating these risks into their proxy voting guidelines, a key tool for investors to encourage responsible corporate governance and corporate behavior.
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About Third Act
Founded by climate activist Bill McKibben, Third Act is a group of organizers, campaign strategists, and communications professionals working together to build a powerful elder-led movement for climate action and democracy protection.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.