Investment Policy for Mitigating Environmental, Social, and Governance Risks
CalSTRS has a well-established, thorough vetting process for potential investments, which seek to test not only the financial potential of investments, but also their social, human and environmental impacts.
Adopted in 2008, the CalSTRS Investment Policy for Mitigating Environmental, Social and Governance Risks, or ESG risks, was developed to assist investment staff in their analysis and decision making. This policy is contained within the CalSTRS investment policy and identifies 21 risk factors, which are a series of procedures to follow when faced with significant environmental, social and governance issues. This policy replaces the CalSTRS Statement of Investment Responsibility, created in 1978, as the preeminent policy on ESG matters.