Chesapeake Energy shareholders will vote on a proposal by the $138 billion California State Teachers’ Retirement System, West Sacramento, calling for the company to produce a sustainability report on environmental, social and governance issues, focusing on greenhouse gas emissions and its plans to manage emissions.
“Reporting on ESG practices helps companies become more responsive to the global business environment and allows them to realize value from their current corporate social responsibility efforts,” Jack Ehnes, CalSTRS CEO, said in a statement from the pension fund. “Transparency on climate change is particularly important because it is one of the most financially significant environmental risks facing investors.”
The company opposes the proposal, saying in a statement that its board of directors “in performing its oversight role, monitors environmental, social and governance issues that affect the company’s operations. Nonetheless, the board believes that preparing and distributing a formal report on such a broad subject would be unduly burdensome and expensive for the company and its shareholders.”
CalSTRS owns about 2.2 million Chesapeake Energy shares.
The company’s annual meeting is June 11.
