The Hidden Risk in State Pensions: Analyzing U.S. Public Pensions’ Responses to the Climate Crisis in Proxy Voting 2025

The second-annual report “The Hidden Risk in State Pensions: Analyzing U.S. Public Pensions’ Responses to the Climate Crisis in Proxy Voting” from Sierra Club and Stand.earth analyzes proxy voting guidelines, 2024 proxy voting records, and voting transparency of 32 public pension funds collectively representing over $3.8 trillion in assets under management (AUM).

While last year’s report focused on self-identified climate leaders, this latest version looks at the proxy voting records and guidelines of the largest and most influential public pension funds in the U.S. This broadened scope includes county and city pension funds, as well as pension funds located in states restricting Environmental, Social, and Governance investing through “anti-ESG” legislation and executive actions. 

The pensions analyzed include the pensions for New York City, Los Angeles County, and the University of California, and pensions in the following states: Arizona, California, Colorado, Florida, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Vermont, Virginia, Washington, and Wisconsin.

>> READ THE REPORT HERE <<

Public pensions control approximately $4 trillion in assets and are meant to invest on the longer-term time horizon. Each year during shareholder season, pensions use workers’ money to cast votes on climate- and fossil fuel-related shareholder resolutions and corporate director elections. Unfortunately, far too many are regularly voting against climate action.

While Trump’s regressive administration backs polluters, municipal and state pension funds have increased responsibility to ensure our long-term economic security.

This report serves as a scorecard and roadmap for public pension managers and executives to act on their fiduciary duty by protecting hard-working beneficiaries from growing climate- and environment-related financial risks by updating proxy voting guidelines, and voting in line with climate this spring during AGM season.