CalSTRS Pressures ONEOK to Report on Greenhouse Gases

The California State Teachers’ Retirement System (CalSTRS) is pressing natural gas pipeline company ONEOK to report on its greenhouse gas emissions through shareowner Proposal 8, scheduled for a vote at the May 15, 2008 annual meeting.

CalSTRS, which owns more than 1,940,000 shares, is asking the other approximately 105,000 ONEOK shareholders to support its call for reporting on the feasibility of setting goals for reducing greenhouse gas emissions. The report would be submitted to shareholders by Dec. 31, 2008. ONEOK is the largest natural gas pipeline company in the Western U.S.

“As a shareholder, we believe it is in our mutual interests for ONEOK to take the necessary first step in addressing the issue of greenhouse gas emissions,” said CalSTRS Chief Executive Officer, Jack Ehnes. “The business risks from climate change are very real and are confronting us today, so taking this step is vital, because protecting the environment means protecting the bottom line.”

Utility companies such as ONEOK lead all business sectors in the production of greenhouse gases, accounting for 25 percent of total emissions worldwide. The “Electric Utilities Report,” published in 2006 by the Carbon Disclosure Project and funded jointly by CalSTRS and CalPERS, found that the true value of utilities was significantly reduced when environmental risks were factored into the valuation.

“It’s time for ONEOK to change its corporate climate to meet the challenges posed by climate change risk — challenges that can and will impact the performance of the company,” said CalSTRS Chief Investment Officer, Christopher J. Ailman. “We consider Proposal 8 a reasonable and forward-thinking standard. More importantly, we consider ONEOK’s continued good performance, vital to the ongoing health of our investment portfolio.”

Earlier this month, a separate report by the professional services organization KPMG put the oil and gas industry sector in particular danger from climate change risk.

Titled “Climate Changes Your Business,” the report examined 18 industry sectors and placed oil and gas among six industries in the “danger zone” by their analysis of risk-versus-preparation.

Established 95 years ago, the California State Teachers’ Retirement System, with a $165 billion portfolio, is the second-largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 813,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts.