President Trump’s executive order directing the U.S. Department of Labor to look into whether private pension funds that have engaged with oil and gas companies on climate change are complying with federal law is “misguided and ignores the very clear information related to the financial risks of climate change,” Ceres CEO and President Mindy Lubber said in statement today.
The federal law in question is the Employee Retirement Income Security Act, known as ERISA, which sets standards for pension funds in the private industry. President Trump’s action on ERISA was part of two executive orders aimed at expediting the processes for building oil and gas pipelines.
Ceres’ CEO and President Mindy Lubber added:
With this executive order, the Trump Administration misses the mark and ignores the financial data. ERISA aims to ensure that pension funds represent the best interest of their beneficiaries, and that investors who are asking oil and gas companies to consider financial and material issues, such as climate-related risks, are doing just that -- protecting their investments. The financial risks, which impact every sector of our economy are jeopardizing share value. Investors should not only have the right to review these risks, must do so to assure judicious financial decision making.
Investors know that working with companies on disclosure and integration of these risks into their businesses is a way to help preserve investment value for shareholders. The data are clear: companies with strong disclosure and integration of these risks perform better financially—for the benefit of their shareholders.
About Ceres
Ceres is a sustainability nonprofit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy. For more information, visit www.ceres.org and follow @CeresNews.