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.