By Staff
The California Public Employees’ Retirement System is adding a commitment to labor issues in its proxy-voting guidelines.
The $533.4bn pension plan announced the new policy in its global public equity proxy-voting and corporate engagement update, included with materials disseminated ahead of its March 17 investment committee meeting.
The CalPERS’ report noted the update mirrors its Labor Principles and that the plan “may withhold vote from director nominees that have demonstrated a lack of commitment and/or failed oversight surrounding human capital management and other labor issues in-line with the CalPERS Labor Principles.”
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Both CalPERS’ Governance and Sustainability Principles and Labor Principles include provisions that emphasize a focus on prevention and/or elimination of discrimination. In its proxy-voting guideline update, the plan said it would hold appropriate director nominees accountable at companies lacking human capital management related disclosures consistent with CalPERS’ Governance and Sustainability Principles and Labor Principles.
The guidelines also noted the plan’s focus areas would include reviews on a case-by-case basis of workforce disclosure and human rights policies, adding it would engage companies with best-in-class human capital practices and disclosures.
