Maryland’s public pension, the Maryland State Retirement and Pension System (SRPS), is making strides to address the climate crisis, but it has more work to do.

The SRPS stewards the retirement savings of public sector workers in Maryland, and key to its role in providing a reliable retirement benefit is the system’s ability to anticipate and manage climate change’s sweeping economic impacts. In late 2024, the SRPS created a Climate Advisory Panel to bring in climate experts, which shows great promise for a comprehensive climate strategy.

But SRPS must not wait to adopt well-established practices. In particular, SRPS’s proxy voting guidelines, the policy that establishes how it will vote on key issues at shareholder meetings, need to align with the urgency of the climate crisis and the financial risks of climate change.

Proxy voting guidelines allow pensions like SRPS to leverage its influence as investors by voting at the annual meetings of major corporations on key issues like climate disclosures, biodiversity protections and Indigenous rights. Right now, SRPS’s guidelines are missing language on climate risk, and the pension system is failing to support critical climate votes.

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Strong proxy guidelines are a powerful tool to protect retirement savings while advocating for responsible corporate behavior. Maryland’s economy — and the retirement security of its thousands of public sector workers — depends on a stable climate, and SRPS has a responsibility to fully employ the tools at its disposal to address climate change.

SRPS Earned a “D” for Proxy Voting Performance

Despite its growing awareness of climate risk, Maryland’s pension system still lags in holding corporations accountable.

In a recent evaluation by the Sierra Club, Maryland earned a “D” for its proxy voting guidelines and 2024 voting record. The evaluation highlighted SRPS’s failure to support key shareholder resolutions on biodiversity and climate accountability. Additionally, SRPS missed critical opportunities to hold corporate directors responsible for misaligned business practices that exacerbate the climate crisis.

Proxy voting guidelines serve as a blueprint for defining responsible corporate behavior. Strengthening these policies would allow SRPS to better align its investments with Maryland’s climate goals and safeguard the retirement savings of public employees. As some of the largest shareholders in the country, public pensions like SRPS have the power — and the obligation — to push corporations to adopt sustainable business practices.

The Stakes for Maryland’s Economy and Workers

The financial risks of climate change are no longer theoretical. Extreme weather events, supply chain disruptions, and shifting energy markets create instability that threatens corporate profits and investors. When pensions ignore these investment risks, it jeopardizes the long-term returns that retirees depend on.

SRPS has already acknowledged these dangers and taken initial steps to assess climate-related financial risks. However, its weak proxy voting guidelines remain a critical gap in its overall strategy. Stronger guidelines would ensure that SRPS doesn’t just acknowledge climate risk — it is actively working to mitigate it.

As the impacts of climate change accelerate, SRPS must take a leadership role in pushing for meaningful change. Maryland’s climate goals are ambitious, but those efforts are undermined if our public pension fails to align its investment policies with our state climate targets.

Strengthening its proxy voting guidelines would allow SRPS to hold corporations accountable for their climate-wrecking behavior and incentivize a shift toward sustainable business practices. These actions would not only align our public pension’s investments with our state’s climate goals — it would also protect the financial future of our public sector workers and retirees.

A Call for Stronger Action

Maryland has an opportunity to lead by example. Strengthening SRPS’s proxy voting guidelines is a necessary and practical step toward protecting the retirement savings of thousands of public sector workers and fostering a thriving economy. By demanding that corporations act responsibly, Maryland can reduce climate risk, protect our public pension, and secure a sustainable future for all.

As the 2025 shareholder season approaches, all eyes are on SRPS. Public sector workers, environmental advocates, and communities will be watching to see whether the pension will rise to the challenge, or continue to lag behind.

Maryland Matters .

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