The Insight
The Proxy Gap: How U.S. Public Pensions Are Failing to Vote on Climate Risk
A 2026 report from the Center for Climate-Aligned Finance reveals a critical oversight in U.S. financial risk management. An analysis of 25 major public pension funds shows that most supported fewer than half of climate-related shareholder proposals from 2023-2025. This underutilization of proxy voting—a key tool for investors—suggests a systemic failure to align fiduciary duty with long-term climate risk. The findings expose a disconnect between the recognized financial threat of climate change and the actionable governance strategies deployed by the stewards of public retirement assets, raising urgent questions about financial resilience and fiduciary responsibility.
