CalSTRS supports California Climate Investment Framework

Statement Karen Doron

WEST SACRAMENTO, Calif. (September 24, 2020) – CalSTRS worked closely with the Department of Finance in the development of the California Climate Investment Framework. We are pleased that the Governor and the Framework recognize CalSTRS’ leadership in sustainable investing. The report reflects the high importance we place on managing climate risks and seeking opportunities to invest in climate solutions. CalSTRS’ legacy of climate reporting preceded and currently exceeds the requirements of SB 964. We will continue to lead in helping the state of California achieve its climate goals through the implementation of the Climate Investment Framework, and the CalSTRS Low-Carbon Transition Work Plan.

The Teachers’ Retirement Board established three Work Plan priorities and five distinct work streams in October 2019 to protect and grow the fund:

Priorities

  • Establish a low-carbon investment belief (January 2020)
  • Assess low-carbon “transition readiness” across asset classes (Ongoing)
  • Expand investments in low-carbon solutions (Ongoing)

Workstreams

  1. Build board and staff consensus on the portfolio impacts of climate change
  2. Evaluate the low-carbon transition-readiness of portfolios by asset class
  3. Identify investments in new climate-related solutions that are additive to the total fund
  4. Expand stewardship activities with companies and public policy makers to influence an orderly low-carbon transition
  5. Enhance communications and reporting strategies

Visit the Transition to a low-carbon economy web page for details on CalSTRS’ climate related investment and stewardship activities.

About CalSTRS

CalSTRS provides a secure retirement to more than 964,000 members whose CalSTRS-covered service is not eligible for Social Security participation. Members retire on average after more than 24 years in the classroom with a monthly benefit of approximately $4,547. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with approximately $262.5 billion in assets under management as of August 31, 2020. 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.