CalSTRS Effort Improves Climate Risk Disclosure
SEC approves initiative to help investors make informed decisions.
WEST SACRAMENTO, CA– The California State Teachers’ Retirement System today applauded a decision by the Securities and Exchange Commission to improve disclosure of climate risk in securities filings.
By a 3-2 vote, SEC commissioners meeting today in Washington, D.C., approved the new initiative to improve corporate disclosure and accountability. CalSTRS considers the SEC vote a first step in addressing the impact of climate change risk on its portfolio companies.
CalSTRS officials have said that addressing climate risk is key to maintaining long-term value from its investment holdings.
“The result of the SEC action is that there will be a consistent standard for companies to report climate risk, and that will help all investors make better-informed decisions,” said Jack Ehnes, chief executive officer at CalSTRS.
Since 2003, CalSTRS and other institutional investors have urged the SEC to issue guidelines to help guide publicly traded companies on climate risk disclosure because of the risk it poses to the environment, society, economies and investments.
The California State Teachers’ Retirement System, with a portfolio valued at $134.1 billion, is the second largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 833,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts.