A new report from the Sierra Club examines the fossil fuel bond holdings of 40 U.S. public pension funds. The analysis, based on data from Urgewald, reveals that these portfolios contain billions of dollars in debt from companies involved in fossil fuel expansion.
The research utilized data from the 2026 Investing in Climate Chaos report, which tracks investments in companies listed on the Global Coal Exit List, the 2026 Metallurgical Coal Exit List, and the 2025 Global Oil and Gas Exit List.
According to the Sierra Club, many pension funds maintain exposure to high-emitting companies despite having existing climate policies or emissions targets. The organization notes that available data on bondholdings remains significantly incomplete.
The Sierra Club recommends that pension funds scrutinize primary-market bond purchases, as these provide direct capital to companies. The report also highlights the role of index-based strategies, such as the BCam Indices, in managing climate risk within corporate bond benchmarks.
