Peabody Energy agreed to produce a report analyzing fossil fuels and their impact on climate change at the request of the Connecticut Retirement Plans & Trust Funds, Hartford.
As a result of this agreement, Denise L. Nappier, state treasurer and principal fiduciary of the $27.1 billion pension fund, withdrew a shareholder resolution filed by the CRPTF that called for the report.
“I have a responsibility to make sure that companies in which we invest examine the potential liability of climate risk on their bottom line,” Ms. Nappier said in a statement. “We will continue to monitor Peabody Energy to ensure that it is taking appropriate steps toward long-term sustainability.”
Connecticut's shareholder resolution called on Peabody Energy to prepare a report “on the company's goals and plans to address global concerns regarding fossil fuels and their contribution to climate change.” Peabody agreed to prepare a report on carbon capture and storage.
CRPTF held 59,800 shares of Peabody Energy valued at $949,026 and Peabody bonds valued at more than $2.43 million as of Wednesday, said David Barrett, a spokesman for Ms. Nappier. Peabody will make its report available by the end of September.
Peabody Energy is the second energy company in 2014 to agree to prepare a report addressing climate risk following shareholder resolutions filed by the CRPTF. In January, Ohio-based energy producer FirstEnergy agreed to produce a report by Oct. 1 on its plan to reduce greenhouse gas emissions, leading to the pension fund withdrawing its resolution.
