Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[Timothy Smith]

Two California congressmen are urging CalPERS to divest its holdings in Exxon Mobil (XOM -0.4%) over its handling of the issue of climate change.

Reps. Lieu and DeSaulnier have sent a letter to CalPERS saying it is "morally suspect" for the $300B pension fund "to invest in a company that engaged in morally reprehensible conduct" on climate change, and that the fund should follow the lead of the Rockefeller Family Fund, which said last week it would divest from fossil fuels and from XOM.

The congressmen say CalPERS' position that divestment is not always the best strategy to change company behavior and that ongoing shareholder pressure can yield more results has not worked.

Yesterday, the attorneys general from Massachusetts and the U.S. Virgin Islands said they launched investigations into whether XOM has misled the public about the risks of climate change, joining AGs from New York and other states.