Sierra Club Report Highlights Underuse of Proxy Voting by U.S. Public Pensions in Climate Risk Management
A recent report by the Sierra Club, titled 'The Hidden Risk in State Pensions: Analyzing U.S. Public Pensions’ Responses to the Climate Crisis in Proxy Voting,' reveals that many U.S. public pension funds are not effectively using proxy voting to manage climate-related financial risks. The report evaluates 33 of the largest public pension funds, including those in New York City, Los Angeles County, and the University of California, among others. It highlights that despite a decline in climate-related shareholder proposals due to political and regulatory challenges, the risks to pension portfolios remain unchanged. The report emphasizes the importance of director votes as a tool for supporting corporate climate action, urging public pensions to enhance their use of director accountability to push for credible, science-based transition plans. 
