CalPERS tilts deck toward ExxonMobil proxy activist; plus Tesla's China problems

Welcome to Callaway Climate Insights. Shale stocks took a one-two punch this week.

Climate change has invisibly altered Earth’s axis, new research shows. Glacial melting due to global warming is likely the cause of a shift in the movement of the poles. And that matters because a change in the distribution of mass on Earth affects the way it spins. Image: NASA.

Proxy season’s biggest climate moment occurred this week after the largest pension fund in the U.S. declared it would vote its 10% stake in ExxonMobil (XOM) for an activist hedge fund’s campaign to replace four directors on the oil giant with a slate more inclined to renewable energy.

The California Public Employees’ Retirement System, or CalPERS, joined the state’s teacher’s fund, as well as the New York State pension fund, in supporting Engine No. 1’s campaign for the proxy election late next month.

CalPERs has long been a leader in pushing a climate agenda, but its support in the ExxonMobil election — the largest climate campaign in the proxy season — is pivotal. Shareholder resolutions and proxy campaigns have been slowly moving in the direction of climate transition in the past few years, but this year could be a breakout.

Citigroup (C) said in its annual environmental report this week that it turned its back on financing deals for 11 coal and mining projects last year, as it began to shift to its pledge to remove fossil fuel financing by 2030. Small amount of projects but a sign the finance industry is beginning to move from pledges, to action.

ExxonMobil has claimed it intends to reduce emissions by 15% to 20% by 2025, and it has raised the idea of a massive carbon capture project, although it would require U.S. support. Engine No. 1, in an analysis released this week, said the company’s emissions are actually set to rise into 2025.

All eyes now turn toward BlackRock (BLK) and Vanguard, both large ExxonMobil shareholders, to see how they will vote. Both have made loud noises about supporting climate change and holding companies to account. Expect to hear shortly.

More insights below. . . .

Don’t forget to contact me directly if you have suggestions or ideas at

Sign up with a 30-free trial

Tuesday’s subscriber insights: A sample of our best offerings

. . . . One subject Elon Musk won’t likely discuss in his monologue on Saturday Night Live this weekend is Tesla’s growing problems in China, it’s largest international market and source of most of it components. The second quarter will be key for Tesla and its stock. Read more here. . . .

. . . . Shale gas stocks, already under pressure from lower production levels, took another hit over the weekend after California Gov. Gavin Newsom banned new fracking permits from 2024. Local politics and a recall campaign played a role, but the ban is real to an industry with 300,000 oil and gas jobs in the state. Read more here. . . .

Editor’s picks: Beef's off the menu; big accounting gap found for emissions reporting

  • Epicurious boots beef off the menu for sustainability

  • Five-billion-ton carbon accounting gap found in emissions reports

  • UN: Methane reductions must be prioritized

Read all of the editor’s picks.

Data driven: U.S. natural gas exports are climbing

The USS Gladiator escorts a large natural gas tanker in a convoy, part of an international mine countermeasures exercise. U.S. Navy photo by Mass Communication Specialist 2nd Class Bryan Blair.

. . . . While natural gas consumption in the United States has declined since 2018, exports of liquid natural gas, particularly to countries in Asia, have spiked. In the U.S., there are five LNG export stations as under construction with 15 more approved. The U.S. LNG market’s potential massive increase in exports could counteract clean energy progress. Read more here. . . .