Statement on proxy advisor support for alternate ExxonMobil director slate

Statement Karen Doron

WEST SACRAMENTO, Calif. (May 18, 2021) – CalSTRS issued the following statement today following reports issued by proxy advisors Glass Lewis and Institutional Shareholder Services (ISS) recommending shareholders support the alternate director slate for ExxonMobil submitted by investment firm Engine No. 1 and supported by CalSTRS in December:

It’s time for change at ExxonMobil, and change is coming.

While the final results will not be known until every shareholder vote is counted, the recommendations by Glass Lewis and ISS reaffirm our belief that ExxonMobil’s board must be strengthened to drive systemic change and help ensure a long-term energy transition strategy.

Just as corporate boards have a responsibility to represent shareholders and act in their best interest, shareholders, too, have an obligation to mitigate risk and promote investor confidence. All shareholders of ExxonMobil will have an opportunity to vote on the alternate slate of directors to strengthen the board and contribute to the sustainable value of their investments.

CalSTRS continues to advocate for all four directors nominated by Engine No. 1.

The links between climate change, business and financial investments are undeniable, and we are taking action to prepare our investment portfolio for the global energy transition while maximizing returns for California’s educators.

About CalSTRS

CalSTRS provides a secure retirement to more than 975,000 members whose CalSTRS-covered service is not eligible for Social Security participation. Members retire on average after more than 24 years in the classroom with a monthly benefit of approximately $4,547. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with approximately $299.8 billion in assets under management as of April 30, 2021. CalSTRS demonstrates its strong commitment to long-term corporate sustainability principles in its annual Global Reporting Initiative Sustainability Report. For more information, visit CalSTRS.com.