Letter to Marcie Frost, CEO of California Public Employees' Retirement System - Retirement System

Letter

Dear Ms. Frost:

As you are aware, the Trump Administration has recently announced its intention to roll back federal fuel economy standards, a decision that is misguided and runs counter to the clear benefits that high fuel economy standards have provided. This shortsighted move undermines the progress that California has made while leading in vehicle technology innovation, economic competitiveness, air quality, and public health. We write to you today to urge the California Public Employees' Retirement System (CalPERS) to divest from any automobile manufacturer that produces cars that fail to meet the emissions standards adopted first by California and then adopted by a dozen other states that have followed California's lead.

Rather than maintain stringent, but reasonable standards for fuel economy and greenhouse gas emissions from motor vehicles, the Trump Administration has taken a stance that punishes innovators--the automakers who have answered the global call for standards that promote clean air and public health, drive down our consumption of oil, reduce costs for American consumers, and keep us competitive in the global marketplace. We have seen the consequences of allowing automakers to fulfill their impulses for temporary, short-term profits, and American taxpayers and those in pension funds deserve better than another, multi-billion-dollar bailout of an industry that refuses to learn the lesson of the last financial crisis.

We understand that CalPERS has worked to establish guidelines and principles for investing in groups that value social responsibility and sustainability goals. We applaud these efforts, and submit that the Trump Administration's planned rollback of fuel economy and emissions standards represents a clear violation of the environmental and social goals you have espoused and it violates California's aspirations for continued innovation and protection from the harmful impacts of climate change. Should auto manufacturers in California begin to decrease their commitment to fuel economy standards in response to the Trump Administration rollbacks, these companies will no longer be operating in the best interest of Californians.

Thank you for your attention to this important matter.