CalPERS, CDPQ and Federated Hermes are putting pressure on Berkshire Hathaway's board to make it clear how the company is managing climate risks and opportunities.
The $452.3 billion California Public Employees' Retirement System, the C$365.5 billion ($290.6 billion) Caisse de depot et placement du Quebec and Federated Hermes are founding members of Climate Action 100+, an organization of more than 500 investor members with a collective $54 trillion in assets.
This year, Climate Action 100+ members are pushing companies to up their climate ambitions. The investors have filed 37 shareholder proposals at North American companies, seeking disclosure on climate-related risks, alignment of business plans with the goals of the Paris Agreement, and transparency in corporate lobbying practices that influence climate and energy regulations. There have been 126 climate-related proposals filed in North America so far this proxy season, according to Ceres.
The group also recently unveiled a net zero company benchmark for evaluating board governance of the issue.
CalPERS, CDPQ and Federated Hermes filed a proposal at Berkshire Hathaway, seeking reports on physical, transitional and other financial risks the company faces in its transition to net zero emissions that are aligned with the Task Force on Climate-related Financial Disclosures.
The company intends to oppose the proposal, and Chairman and CEO Warren Buffett rebuffed their offer to discuss it in advance.
"We found the response from the board to be enlightening and ask that the board reconsider its opposition," said Timothy Youmans of Federated Hermes in a letter to Berkshire Hathaway officials.
CalPERS also tweeted the request Tuesday, saying, "We manage our investments for sustainable returns (and) we request that the board of Berkshire Hathaway Inc. publish an annual assessment addressing how the Company manages physical and transitional climate-related risks and opportunities."