Send the letter below to CalPERS board members!
Dear CalPERS Board Members,
Despite CalPERS and other investors’ efforts to engage with Exxon, the corporation remains committed to a business model that is fueling the climate crisis. Exxon continues to rebuff engagement efforts, demonstrating that it’s time for CalPERS to take action. An essential next step for CalPERS is to place a moratorium on new Exxon bond investments.
Exxon bonds fuel oil and gas expansion and many do not mature until well past CalPERS’ 2050 target for achieving net zero. In fact, this fall Exxon issued a bond with a maturity date of 2074. These bonds provide Exxon with unrestricted funds to continue business as usual, despite the ever-increasing systemic risks of climate change. The corporation’s bleak economic future is underscored by the International Energy Agency’s analysis that oil and gas usage is estimated to peak in 2030.
Purchasing bonds from Exxon is risky. Whether ExxonMobil fails to repay the bonds or its polluting activities contribute to diminishing returns across the economy, CalPERS beneficiaries will be left holding the pursestrings.
Any new fossil fuel bond investment contradicts CalPERS’ sustainability principles and endangers millions of beneficiaries’ retirement security. Look no further than Exxon’s actions over the last year. The State of California is engaged in two comprehensive lawsuits about the harm the fossil fuel industry has caused to the state and its residents. In the most recent action, California Attorney General Rob Bonta, alongside environmental organizations like the Sierra Club, sued Exxon for lying to the public about the recyclability of plastics. Additionally, Exxon sued shareholders this year after they brought forward a climate-related shareholder resolution. The corporation has doubled down on this lawsuit by promising to sue investors like CalPERS if they continue to propose climate-related shareholder resolutions.
Exxon’s actions make it clear that the corporation will continue to pursue its environmentally harmful and financially risky business model despite the interests of its shareholders.
CalPERS' actions to hold Exxon accountable by voting against its Board and demanding that Exxon CEO Woods be removed from keynoting at the Council of Institutional Investors conference in September have not shaken Exxon’s commitment to a risky business model relying on fossil fuels. As executives of the nation’s largest public pension fund, your commitment to stop purchasing bonds from Exxon can set a powerful example for investors who understand the financial risks posed by climate change. Ending the purchasing of bonds from Exxon will protect the economic security of millions of Californians who depend on the stability of CalPERS’ investments.
Thank you for considering this vital action.