Investment Policy for Mitigating Environmental, Social, and Governance Risks

General Information

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, and revised in 2018, 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, contained within the CalSTRS investment policy, identifies ESG risk factors to consider and also provides 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.