Low-Carbon Economy

Transition to a low-carbon economy

Overview

CalSTRS recognizes that climate change presents a material and existential risk to society and the economy. We are committed to influencing public policies, engaging with companies and investing to promote an orderly transition to a low-carbon economy that benefits all.

Divesting from fossil fuel doesn’t reduce greenhouse gas emissions and doesn’t address all the different factors that contribute to climate change. CalSTRS is focused on actions that reduce emissions and support an orderly low-carbon transition.

CalSTRS has established practices to manage climate risk within our investment portfolio:

CalSTRS is also part of global coalitions seeking improved disclosure and action to address climate risk. CalSTRS is actively involved with:

Video VideoFebruary 5, 2020

The value of engagement

The value of engagement

As a long-term investor, CalSTRS engages companies to align their policies and business practices with the changing world around us. This short, animated video explains how engagement improves corporate sustainability and creates long-term value for CalSTRS members.

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CalSTRS perspective on fossil fuel divestment

CalSTRS acknowledges there are interested parties and stakeholders calling for fossil fuel divestment. Divestment is a last resort action that can have a lasting negative impact on the health of the Teachers’ Retirement Fund, while also severely limiting our ability to shape corporate behavior for long-term sustainable growth.

We share this sense of urgency regarding climate change and are focused on understanding and responding to the risks it presents both to the CalSTRS Investment Portfolio and to sustainable economic growth. That’s why it’s imperative we continue to use our influence with policy makers and companies—including the fossil fuel industry—to help ensure an equitable, prosperous and low-carbon world for future generations.