Low-Carbon Economy

Transition to a Low-Carbon Economy

Overview

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.

Read more: How CalSTRS is Participating in the Transition to a Low-Carbon Economy

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Green Initiative Task Force Report

CalSTRS created an internal Green Initiative Task Force made up of representatives across all asset classes. The most recent report is responsive to SB 964 (Allen) climate reporting requirements.

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Engagement

CalSTRS prefers engagement over divestment as it upholds our rights as a shareholder and allows us to discuss issues with companies that impact the long-term value of the fund. The board will consider divestment as a last resort, but only after pursuing engagement and conducting careful financial analysis.