Once a year, investors can exercise their proxy voting rights at companies’ annual general meetings, or AGMs. CalSTRS executes more than 100,000 votes at about 10,000 company AGMs every year.

In those meetings, voters consider shareholder proposals; formal recommendations to a company’s board of directors requesting a new course of action. For example, a proposal may ask for an annual report detailing efforts to reduce greenhouse gas emissions as a means of managing and mitigating climate-related risks.

CalSTRS voted on 1,212 shareholder proposals in the 2025 proxy season, voting in favor of 484 and against 728. Topics included greenhouse gas disclosures, workforce management, employee wellness and board governance. Staff review company reports and independent research to determine how to vote in the best interests of CalSTRS’ members.

A vote against a proposal does not signify CalSTRS finds the topic insignificant. Each shareholder proposal is carefully considered based on its details and the processes and needs of the company.

CalSTRS will continue to influence the world’s largest companies to create business practices that minimize risk and create value, helping to ensure California’s public educators continue to have a secure retirement.

Learn more about proxy voting and CalSTRS voting history.

Lyft eliminates dual-class shares

In August, rideshare company Lyft announced it would be converting from a dual-class share structure to a one share, one vote voting structure. Dual-class share structures include shares with greater voting power than others, not in proportion to economic interests. These structures provide outsized voting power to certain investors, typically founders and company insiders, that can skew voting outcomes.

Lyft’s dual-class share structure had been in place since the company’s initial public offering in 2019. CalSTRS, an investor in Lyft when the company was still private, engaged the company leading up to the IPO to adopt a one share, one vote structure. CalSTRS supports these structures because they create direct proportionality between an investor’s economic interest and voting power at a company. If a company adopts a dual-class share structure at its IPO, CalSTRS encourages those companies to transition to one share, one vote within seven years. Academic research finds while dual-class companies have a value premium after going public, the benefit fades to a discount after seven years.

Building industry influence

During the past quarter, staff attended multiple events aimed at building working relationships with senior company executives and fellow investors. Attendance at these events allows CalSTRS staff direct access to decision-makers who can shape corporate behavior. These relationships are foundational to CalSTRS’ ability to use its influence to accelerate the transition to a net zero portfolio. This work is important as progress toward our net zero goals will not happen unless the global financial markets also demonstrate meaningful progress toward net zero. Major events that took place during the quarter include:

• Climate Week New York City: A preeminent week-long event focused on advancing action to address climate change.
• Canadian Imperial Bank of Commerce (CIBC) Capital Markets Annual Stampede Energy Forum: An event connecting investors with leading Canadian energy companies.
• Barclays Energy and Power Conference: A convening of energy company executives and investors.
• Enercom Denver: The largest independent investor conference for the oil and gas industry, connecting energy companies with investors.
• Permian Energy Dialogues: An event connecting investors with representatives from energy companies that operate in the Permian Basin, a geographic region in the southwestern United States primarily known for its oil and gas production.

Engaging the EPA on crucial policy

In September, CalSTRS sent a letter to the Environmental Protection Agency regarding the regulator’s proposal to roll back its endangerment finding. This 2009 finding shows greenhouse gas emissions threaten public health and welfare. This provides the legal basis for many EPA climate regulations intended to curb emissions and combat climate change. In the letter, CalSTRS stressed the economic and reputational risk created for portfolio companies should the endangerment finding be rolled back and companies fail to maintain responsible operating practices. The potential roll back could also contribute to an unpredictable regulatory environment, limiting companies’ ability to make effective long-term strategic decisions. While the proposal is expected to be met with significant pushback and legal challenges, CalSTRS will continue to explore ways to constructively engage the EPA.

Read CalSTRS' full letter to the EPA.