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.

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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Statement on divestment

CalSTRS acknowledges that 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 CalSTRS’ ability to shape corporate behavior for long-term sustainable growth. It is imperative for CalSTRS to continue to engage on climate change risks with the fossil fuel industry.

CalSTRS is focused on understanding and responding to the risks that climate change presents to the portfolio and to sustainable economic growth. Engagement has proven successful in reducing greenhouse gas emissions. CalSTRS low-carbon transition work plan will help position the portfolio to be resilient in a changing world.