The Vermont Pension Investment Commission (VPIC) has updated its proxy voting guidelines to better reflect the role of voting to address systemic risks posed by climate change. The US state pension scheme has also strengthened its expectations of public companies, calling on them to disclose and address risks across climate change, biodiversity and human impacts. “Third Act Vermont has been working closely with VPIC and the Vermont Treasurer’s Office to support VPIC’s efforts to decarbonise its portfolio and ensure its investments are in line with Vermont values,” said David McColgin, Co-facilitator of Third Act Vermont, a campaign group. “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.” This comes three months after the state received a ‘B’ grade on its previous proxy voting guidelines in non-profit Sierra Club’s annual ‘Hidden Risk in State Pensions’ report and scorecard. “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,” said Allie Lindstrom, Senior Strategist in the Sierra Club’s Sustainable Finance Campaign. “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, [and] we hope to see [others] follow Vermont’s lead in holding corporations accountable for their climate impacts.”
