Ahead of the 2024 proxy season, the California State Teachers’ Retirement System (CalSTRS) has asked investee companies to prioritise the measurement, disclosure, mitigation and reduction of methane emissions. CalSTRS explained that it is focused on this issue due to the potency of methane emissions, the fact that they remain under-reported, and the cost-effectiveness of reductions. Specifically, the pension fund said eligible companies should aim to join the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), an independent initiative that requires members to actively measure emissions and set credible reduction targets. Since CalSTRS began engaging with companies on OGMP 2.0 in 2023, 15 eligible companies have joined, including Chevron and ExxonMobil. In addition, the asset owner plans to vote in favour of all shareholder proposals calling for companies to join OGMP 2.0. “Building on years of collaborative success, we’re continuing to use our influence as a long-term shareholder to impact the world’s highest greenhouse gas-emitting companies and their sustainability,” said Aeisha Mastagni, Senior Portfolio Manager on CalSTRS’ Sustainable Investment and Stewardship Strategies team. “We’re asking our portfolio companies that have not already done so to take meaningful action toward measuring, disclosing and reducing methane emissions, one of the most economically viable and immediate means to slow climate change.”
News release: CalSTRS focuses on methane emissions reduction, workforce disclosures in 2024 proxy season. https://t.co/6D3G8Qfe9I pic.twitter.com/nYMByNvxpn
— CalSTRS (@CalSTRS) March 27, 2024
