GOVERNANCE

Shareholders pass climate change risk disclosure proposal at PPL Corp.

PPL Corp. headquarters in Allentown, Pa.

Shareholders voted in favor of a climate change risk disclosure proposal at PPL Corp.’s annual meeting Wednesday, said a news release from the energy company.

The proposal, filed by the Thomas P. DiNapoli, state comptroller and sole trustee of the $186 billion New York State Common Retirement Fund, Albany, called for PPL to prepare a report of the long-term impacts on the company’s portfolio under the 2-degrees scenario, the concept of limiting the average global temperature increase to 2 degrees Celsius.

An exact vote tally was not provided.

The $320.7 billion California Public Employees’ Retirement System, Sacramento; $202.8 billion California State Teachers’ Retirement System, West Sacramento; $189.4 billion Florida State Board of Administration, Tallahassee; C$175.6 billion ($128 billion) Ontario Teachers' Pension Plan; C$316.7 billion Canada Pension Plan Investment Board, Toronto; and $133.2 billion Texas Teacher Retirement System, Austin; voted in favor of the non-binding proposal, according to their proxy-voting disclosures.

In its proxy statement, PPL’s board of directors recommended that shareholders vote against the climate change risk disclosure proposal, arguing that the board “does not believe resources should be allocated to assess a 2-degree Celsius scenario in light of (PPL’s) current business mix, the lack of a specific framework that can be adequately modeled, and uncertainty over whether the Paris Agreement to address climate change will be honored by the United States.” The board also argued that the report is unnecessary in light of the company’s other sustainability actions.

A similar proposal was approved by more than 50% of shareholders at Occidental Petroleum Corp’s shareholder meeting on May 12.

A PPL spokesman was not immediately available for further information.