Sierra Club Report Highlights Underuse of Proxy Voting by U.S. Public Pensions in Managing Climate Risk
The Sierra Club has released its third-annual report titled 'The Hidden Risk in State Pensions: Analyzing U.S. Public Pensions’ Responses to the Climate Crisis in Proxy Voting.' The report evaluates and ranks 33 of the largest public pension funds in the United States, revealing that most continue to inadequately manage climate-related financial risks through proxy voting. This shortfall potentially undermines the long-term portfolio values and retirement security of millions of public-sector workers. The report analyzes proxy voting guidelines, records from 2025, and voting transparency, highlighting a growing trend of investors willing to hold corporate boards accountable for oversight failures. Despite fewer climate-related shareholder proposals reaching ballots due to political and regulatory headwinds, director votes are becoming increasingly important for maintaining corporate climate action support. 
