Transition to a Low-Carbon Economy
As a global institutional investor with a focus on the long term, 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 the companies in our portfolio and investing to promote an orderly transition to a low-carbon economy that benefits all.
The links between climate change, business and investment are becoming increasingly evident. Climate change presents both:
- Physical risks: Risks that arise from the physical impacts of a changing climate.
- Transition risks: Risks that arise from the transition to a low-carbon economy, such as policy shifts and technological transformations.
Significant investment opportunities also exist in helping the global economy both mitigate and adapt to a changing climate.