A recent report by the Sierra Club assessed the proxy voting guidelines and practices of 32 US state pensions for their effectiveness in addressing climate-related financial risks. The report found that only one pension fund, the Massachusetts Pension Reserves Investment Management, received an A grade for its guidelines and voting, while two-thirds of the pensions received D or F grades. The report praised the New York State Common Retirement Fund for its proactive approach to risk mitigation, while seven other funds received B grades for their solid performance on climate-related votes. The report also highlighted that eight pensions had transparent voting records, with a minority having incomplete or non-existent records. Overall, the report suggests that many state pensions are still failing to effectively address climate-related financial risks in their proxy voting practices.
The majority of US state pensions neglect to consider climate-related risks in their proxy voting decisions.
