Sustainability Risk Management

Sustainability Risk Management

Overview
News release Michelle Mussuto

CalSTRS Green Initiative Task Force Report Evaluates ESG Risks
Each asset class presents methods used to identify and evaluate environmental risks.

Christopher Ailman

WEST SACRAMENTO, Calif. (Feb. 8, 2018) – The California State Teachers’ Retirement System presented its 11th annual Green Initiative Task Force Report yesterday at the Teachers’ Retirement Board Investment Committee meeting. The report highlights CalSTRS environmental-themed investments and environmental risk-management efforts.

News release Michelle Mussuto

Leading Investors Launch Historic Initiative Focused on U.S. Institutional Investor Stewardship and Corporate Governance
Unveils Framework of Guiding Principles with Expectation of Long-Term Value Creation, Investor Protection

CalSTRS is one of the founders of the Investor Stewardship Group. The ISG is a collective of some of the largest U.S.-based institutional investors and global asset managers, along with several of their international counterparts. It was formed to develop a sustained initiative to establish a framework of basic standards of investment stewardship and corporate governance for U.S. institutional investor and boardroom conduct. The ISG is being led by the senior corporate governance practitioners at institutional investor and investment management firms.

The ISG brings all types of investors together to enable them to speak with one voice on these fundamental issues of corporate governance and investment stewardship.

News release Ricardo Duran

CalSTRS Green Bond Program Enters Its Seventh Year
CalSTRS Fixed Income is a leader in the green bond market, more than tripling its holdings over the past two years

WEST SACRAMENTO, Calif. – Seven years after initiating its green bonds program, the California State Teachers’ Retirement System is poised for continued portfolio growth and holdings expansion, as reflected in the 10th annual Green Initiatives Task Force Report released yesterday.

News release Gretchen Zeagler

CalSTRS Releases 8th Annual Green Initiative Task Force Report
Environmentally-focused strategies nearly triple green bond purchases

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System’s (CalSTRS) eighth annual Green Initiative Task Force 2014 Annual Report shows an almost 300 percent increase in green bond purchases within the Fixed Income portfolio. This year, the Teachers’ Retirement Board identified sustainable investing as a key, strategic priority, which is reflected in the report and other initiatives.

News release Gretchen Zeagler

U.S. Insurance Companies’ Response to Climate Change Impacts Investment Risks
CalSTRS says new report shows more action from the insurance sector is needed

WEST SACRAMENTO, Calif. – A new report from Ceres ranks the nation’s 330 largest insurance companies on their response to climate-related risks and finds a profound lack of preparedness. CalSTRS currently holds $4.3 billion of investments in the insurance sector, which represents 2.4 percent of the overall portfolio. CalSTRS believes that climate-related risks and opportunities can affect the performance of its investments.

News release Michael Sicilia

Investors Ask Fossil Fuel Companies to Assess How Business Plans Fare in Low-Carbon Future
Coalition of 70 investors worth $3 trillion call on world’s largest oil & gas, coal and electric power companies to assess risks under climate action and ‘business as usual’ scenarios.

WEST SACRAMENTO, CA – A group of 70 global investors managing more than $3 trillion of collective assets today launched the first-ever coordinated effort to spur 45 of the world’s top oil and gas, coal and electric power companies to assess the financial risks that climate change poses to their business plans.

News release Michael Sicilia

Is the U.S. Insurance Industry Prepared for Climate Change?
Analysis of first-ever industry-wide survey finds that only 23 of 184 companies have comprehensive climate change strategies, yet some leaders are emerging.

Ceres proposes recommendations to insurers and regulators to maintain insurability in a warming world.

BOSTON – 2012 was the warmest year on record in the lower 48 states and the second most extreme weather year in United States history. Insurers are increasingly acknowledging that extreme weather has become the new normal, yet a new report from Ceres finds that many in the industry are only just beginning to think about how to address the effects climate change may have on their business – while a small group of companies is leading the way.

News release

CalSTRS Joins The Climate Registry
Commits to measure and report carbon emissions

 WEST SACRAMENTO, CA  – The California State Teachers’ Retirement System (CalSTRS) today announced it has joined The Climate Registry, the leading voluntary greenhouse gas (GHG) registry in North America. A nonprofit group governed by states, provinces and tribes, The Registry helps organizations measure and reduce their GHG emissions.

News release

CalSTRS Urges Support of Sustainability Resolution at Chesapeake Energy
Two key proxy advisor firms support call for sustainability report by directors at Chesapeake Energy.

WEST SACRAMENTO, CA– A resolution proposed by the California State Teachers’ Retirement System (CalSTRS) calls on Chesapeake Energy Corporation (NYSE: CHK) to issue a sustainability report on environmental, social and governance (ESG) issues, focusing on greenhouse gas emissions and its plans to manage emissions. It is the first shareholder resolution on sustainability reporting submitted for consideration at Chesapeake.

News release

Study Shows Electric Utilities Need an Energy Revolution to Reduce Dependence on Fossil Fuels
Calls for increased transparency to aid investors

 Sacramento, CA – On the eve of Earth Day observances, a new report calls for an energy revolution in the operation of electric utilities if greenhouse gas emissions are to be significantly reduced. The report raises the question of how much electric utilities will need to pay for their ongoing carbon emissions and analyzes current levels of risk disclosure to investors.

News release

Regulators Require Insurers to Disclose Climate Change Risks and Strategies
State Insurance Commissioners Break New Ground By Mandating Climate Disclosure from World’s Largest Industry

SAN DIEGO, CA– The National Association of Insurance Commissioners (NAIC) today approved a groundbreaking mandatory requirement that insurance companies disclose to regulators and investors the financial risks they face from climate change, as well as actions the companies are taking to respond to those risks.