Low-Carbon Transition Work Plan highlights

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CalSTRS will capitalize on new investments that are additive to the total fund, with a focus on the intersection of climate change and positive financial drivers that support a low-carbon transition.

Sustainable investment initiatives Board priority Progress Upcoming activities
SISS Private Portfolio Expand investments in low carbon solutions Developing proposed structure and governance framework for SISS private portfolio Request approval of SISS private portfolio by December 2020
Develop SISS pipeline Expand investments in low carbon solutions Initiated due diligence on more than 10 low-carbon related investment opportunities Continue development and assessment of opportunities
Asset Class Partnerships
  • Assess “Transition Readiness” across asset class
  • Expand investments in low carbon solutions
Identify existing relationships within CalSTRS private asset classes to leverage high-quality deal flow Discuss investment opportunities with existing strategic partners

CalSTRS has intensified its efforts to secure strong commitments from companies to reduce emissions and manage low-carbon transition risks.

Engagement initiatives Board priority Progress Upcoming activities
CalSTRS leads on eight Climate Action 100+ engagements Assess “Transition Readiness” across asset class Secured net zero commitments from:
  • Southern Co.
  • Duke Energy
  • Dominion Energy
  • Dalkin Industries
  • ENEOS
Monitor progress on net zero commitments, and secure commitments from Torray Industries, Nippon Steel and Phillips 66
Low Carbon Policy Advocacy Assess “Transition Readiness” across asset class
  • Serve on Carbon Pricing Policy Working Group (CERES)
  • Serve on Valuing Water Finance Task Force (CERES)
  • Supported methane emissions regulation in PA
  • Continue serving on CERES advisory committees and support CERES Blueprint for Responsible Policy Engagement on Climate Change
  • Develop strategy to support low carbon transition legislation
Activist Stewardship Assess “Transition Readiness” across asset class Identified strategic opportunity for innovative activist stewardship methodology and campaign Continued discussion with board