Multiple asset managers are planning to move forward with anti-fossil fuel shareholder proposals for 2022 and 2023 at Texas' two major university systems, according to a report from the conservative watchdog group American Accountability Foundation (AAF). Utilized donated funds.
owned by black rock Aperio Group, Cantillon, Chaired by former Vice President Al Gore Generation Investment Management, GQG Partners and JPMorgan Asset Management jointly managed approximately $4 billion for the University of Texas/Texas A&M Investment Management Company (UTIMCO) as of July, the university system's Handles donations. Despite the company's stance on Texas' status as a major oil and gas producing state, UTIMCO's asset management firm has passed more than 150 shareholder resolutions under the environmental, social, and governance (ESG) umbrella. supported. the gas industry, according to documents obtained by AAF through a public records request and shared exclusively with the Daily Caller News Foundation.
“Once again, woke ESG ideology has infected public institutions and hijacked their funds for our own purposes. This is an outrageous betrayal of public trust,” said AAF President Thomas Jones. told DCNF. “[Republican Texas] Governor Greg Abbott must take immediate action to end this nonsense. He needs to shake up the leadership at UT/A&M that allowed this to happen and use his influence over UTIMCO to ensure this never happens again. ”
UTIMCO tells DCNF that ESG and diversity, equity, and inclusion (DEI)-related votes violate “long-standing policies prohibiting the use of the economic power of donor funds to advance social or political agendas.” said that the investigation found that they consisted of 0.3 votes. % of the approximately 45,000 proxy votes cast in recent years. The fund administrator added that it would amend the guidelines after discovering the voting violations, impose the guidelines on all third-party investment managers before any future proxy votes, and revoke the voting privileges of companies that fail to comply with the guidelines. Ta.
🚨EXCLUSIVE🚨'Racial Equality,' Battleground State Pension Funds Used by Wall Street Giants to Advance Climate Change Issues, Report Finds @jasonjournoDC https://t.co/LXx3y4WZPV
— Daily Caller (@DailyCaller) January 25, 2024
The firm's asset managers cited “racial and gender pay gap reporting, efforts to defund conservative candidates and pro-business trade groups, radical climate policies, targeting of gun buyers, and abortion.” We voted in favor of a total of 159 shareholder proposals, including initiatives to prohibit ” said the warden.
UTIMCO is maximum American public funds, manage More than $76 billion as of August 31st. (Related: Exclusive: Battleground state pension funds report on efforts to promote 'racial equity', fight climate change, and findings)
“While UTIMCO's mission is to 'generate superior long-term investment returns in support of the University of Texas and Texas A&M University System,' these votes support a political agenda that is contrary to the system's best interests.” Jason Isaacs, CEO of the American Energy Association and former Republican Texas congressman, told DCNF. “UTIMCO's fund managers are violating their fiduciary duties by supporting proposals that would harm U.S. energy producers.”
Texas leads the nation in crude oil and natural gas production, accounting for 43% of crude oil production in 2023. According to To the U.S. Energy Information Administration. However, the AAF noted numerous instances in which UTIMCO's asset managers have voted in favor of proposals aimed at reducing greenhouse gas (GHG) emissions and other actions aimed at mitigating so-called climate change. However, the watchdog claims this is done at the expense of creating value for investors.
For example, at ExxonMobil's May 2023 annual general meeting, Aperio Group I voted support suggestion Recalculate greenhouse gas emissions to account for divested assets. The resolution argues that “the economic risks associated with climate change exist in the real world, not on corporate balance sheets,” and while the investments ExxonMobil sells may reduce emissions on paper, They argue that it doesn't actually help achieve the goal of maintaining global temperatures. Avoiding 1.5 degrees Celsius, the goal of the 2015 Paris Climate Agreement, could expose the company and its stakeholders to what it calls “climate risks.”
Some of Aperio Group's clients have access to: customization individual voting policies; According to To Black Rock. BlackRock itself voted against ExxonMobil's proposal on behalf of most of its customers.
“AAF's report on UTIMCO's investment practices should be a wake-up call for all Texans who value our state's proud oil and gas industry,” Texas Railroad Commissioner Wayne Christian told DCNF. . “We see investments in Texas universities being used to support radical ESG agendas, decarbonization, and dangerous policies like net zero and the Paris Agreement that threaten energy independence and the economy. This is outrageous. We must end the woke political agenda that undermines the foundation of Texas' success and ensure that our investments align with the values of hardworking Texans. yeah.”
Additionally, at defense contractor Raytheon Technologies' annual shareholder meeting in May 2023, JPMorgan Asset Management will suggestion It called on the company to issue a report on its efforts to reduce greenhouse gas emissions in line with the Paris Climate Agreement.
“Raytheon Technologies generates significant carbon emissions from its value chain and is exposed to numerous climate-related risks,” the report states. “Failure to respond to this changing environment could reduce Raytheon's competitiveness and adversely affect our cost of capital and our stockholders' financial returns.”
Isaac told DCNF that UTIMCO's “management discriminates against fossil fuel companies through ESG investing based on Texas' definition of a 'boycott'.” Senate Bill 13Abbot signed It was founded in 2021, and former representatives said they helped create it.
The bill defines boycotting energy companies as refusing to do business with or terminating business with companies involved in fossil fuels “without a normal business purpose.” In addition, “companies'' may be subject to “penalization or It also stipulates actions aimed at causing economic damage or restricting commercial relationships.
Isaac said asset managers should be “held accountable and placed on Texas' list of 'financial companies boycotting energy companies,' and Texas public investment entities subject to SB 13 should be held accountable.” “We are obligated to avoid contracting with or exiting these companies unless they agree,” it added. We can demonstrate that this is inconsistent with fiduciary duty. ”
of S&P Global Clean Energy Index, Companies, including those engaged in energy production from renewable sources, have fallen by about 8% so far through 2024. S&P 500 Energy Indexwhich includes many oil and gas companies, rose nearly 5% over the same period.
Louisiana residents' pension funds were similarly used to promote climate-related proposals within publicly traded companies, DCNF reported in April based on a separate public records request by AAF.
“UTIMCO's asset management firm's apparent promotion of left-wing causes, including ESG, is deeply troubling and violates Texas law prohibiting boycotts and discrimination against fossil fuels. Congress should provide oversight. , we must hold UTIMCO accountable,” Republican Texas Congressman Brian Harrison told DCNF. “Government agencies, including those they represent, should not pursue goals that harm the Texas economy and run counter to our values.”
Cantillon, GQG Partners, Texas A&M and the Abbott firm did not respond to DCNF's requests for comment. Aperio Group, Generation Investment Management, JPMorgan Asset Management and the University of Texas declined to comment.
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