CalSTRS announces new low-carbon transition readiness investment in global equity markets
CalSTRS will be one of the largest investors in new BlackRock exchange-traded fund suite
WEST SACRAMENTO, Calif. (April 9, 2021) – The California State Teachers’ Retirement System (CalSTRS) today announced its investment in two new low-carbon transition readiness exchange-traded funds (ETF). The BlackRock U.S. Carbon Transition Readiness ETF and the BlackRock World ex U.S. Carbon Transition Readiness ETF began trading yesterday and are one of the largest ETF launches in history. These ETFs address market risks and opportunities associated with the global transition to a low-carbon economy while also closely tracking the performance of the broad equity market.
While CalSTRS has managed environmental risks, including climate change, within its portfolio for more than 15 years, the Teachers’ Retirement Board initiated its low-carbon transition work plan in May 2019. This investment in BlackRock’s ETFs makes progress on two goals of the work plan: to expand low-carbon investments that meet the Fund’s risk-return goals and to better understand how companies within the investment portfolio are positioned for the low-carbon transition.
“Investing in BlackRock’s transition readiness strategy is an innovative new way for CalSTRS to prepare for the global energy transition while also maximizing returns for our membership,” said Chief Investment Officer Christopher J. Ailman. “This investment is just one example of the many ways that CalSTRS is expanding investments in sustainability and climate-related solutions across our portfolio.”
CalSTRS provides a secure retirement to more than 975,000 members whose CalSTRS-covered service is not eligible for Social Security participation. In 2019–20, members retired on average after more than 24 years in the classroom with a monthly benefit of approximately $4,614. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with approximately $286.9 billion in assets under management as of February 28, 2021. CalSTRS demonstrates its strong commitment to long-term corporate sustainability principles in its annual Global Reporting Initiative Sustainability Report. For more information, visit CalSTRS.com.