CalPERS Steps Up Pressure on Exxon
The California Public Employees’ Retirement System joined with treasurers in six states and other investors Wednesday in an effort to raise pressure on Exxon Mobil Corp. to address global warming.
Sacramento-based CalPERS and the investor coalition requested a meeting with independent directors of the world’s biggest energy company to discuss its failure to pursue alternatives to petroleum-based fuels.
Exxon Mobil has avoided investments in alternative fuels such as ethanol because its expertise is in finding and refining crude oil, Chief Executive Rex Tillerson said in a March 7 interview. The company expects oil and natural gas to be the dominant energy sources for cars, homes and factories through 2030.
“The concern we have with Exxon Mobil is that their long- term expectation is that the proportion of energy needs met by oil will remain the same,” said John Wilson, who helps manage $4.2 billion at Christian Bros. Investment Services Inc. in New York. “There’s no sense that they’ve done any kind of real planning in case it doesn’t turn out that way.”
Exxon Mobil, Chevron Corp. and other oil companies face increasing pressure from investors and policymakers to develop alternative fuels because of soaring energy prices and rising concern about how burning fossil fuels affects global climate. President Bush last month said use of ethanol should be expanded to help control prices and boost supplies.
Exxon Mobil and CalPERS couldn’t be reached for comment.
At 27.9 million shares, Exxon Mobil at the end of March was the biggest holding in CalPERS’ $208-billion portfolio.
Other investors involved in the initiative include the treasurers of California, Connecticut, Maine, Maryland, Pennsylvania and Vermont; New York City Comptroller William Thompson and several religious, environmental and labor groups.
Also Wednesday, CalPERS said it has voted to ban investments in nine companies that do business in Sudan until that country’s government halts what the fund calls genocide and other human rights violations.
