CalSTRS Retired Educator - Summer 2007 eNewsletter - CalSTRS Takes a Stand on Global Warming

The world won’t soon forget the widespread destruction of the 2005 Atlantic hurricane season, which resulted in more than 2,000 deaths and record damages of over $100 billion.

There is increasing evidence that natural disasters like Hurricane Katrina will become more common in the future. The United Nations Intergovernmental Panel on Climate Change, the most authoritative group on global warming, reported in April that “as global warming continues, certain weather events and extremes will become more frequent, widespread or intense.”

Climate Change Affects More than Weather

Climate change threatens our physical environment. But it also threatens the health of corporate assets, insurers and global investment portfolios—the lifeblood of the Teachers’ Retirement Fund. As a result, CalSTRS is firmly committed to becoming a leader in tackling the climate change threat.

Taking Action

Last March I joined the CEOs of multi-billion-dollar institutional investors, asset managers and major corporations including PG&E, BP America, Sun Microsystems, DuPont and CalPERS in signing a public statement calling for a mandatory national policy on reducing greenhouse gas emissions. The statement also calls for realigning a range of other national policies to achieve climate objectives.

In addition, CalSTRS is actively involved with local and international organizations that promote a better understanding of the financial risks and investment opportunities posed by climate change. And to make sure the companies in our portfolio know that this is a significant issue for us, we address it with every company we engage. Our work is starting to show results: Last year AIG, the world’s largest insurance company, became the first U.S. insurer to announce a climate change policy.

<< Previous Article || Article Continues >>

[1][2]