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Sustainable investment team highlights priorities, recent successes

CalSTRS Stewardship Priorities: Corporate and market accountability, board effectiveness, net zero transition, responsible firearms

CalSTRS’ sustainable investment team shared highlights from last year’s efforts and our 2023 stewardship priorities with the board’s Investment Committee. We designed our stewardship priorities to drive long-term success within the CalSTRS Investment Portfolio, on behalf of California’s public school educators.

We chose this year’s priorities for three main reasons:

  • These issues have significant relevance to the entire portfolio.
  • We have the tools to generate change around these issues.
  • All these efforts have measurable outcomes.

For the second consecutive year, our primary focus is on the net zero transition. This means transitioning our portfolio so the companies we invest in do not emit greenhouse gases unless offset by reductions. We will accomplish this by establishing baselines for assessing portfolio companies’ progress and alignment toward a net zero economy and escalating engagement tactics with the highest-emitting companies that fail to show credible transition plans.

Using our influence as a significant global investor, we will also manage risks through addressing these three priorities:

  • Corporate and market accountability: Advocating for mandated corporate disclosures of climate change-related risks and human capital management practices. Human capital management refers to several employee wellness factors, including workforce diversity, pay, benefits, hiring, retention and business culture.
  • Board effectiveness: Expanding board diversity beyond gender, with a focus on improving overall corporate human capital management practices.
  • Responsible firearms: Gaining a greater understanding of how data, outreach and education can reduce the misuse of firearms.

See the full list of 2022 highlights online, including successes in furthering board diversity, progress in engaging with high-emitting companies, and addressing firearm safety issues to help reduce investment risk for CalSTRS and our peers.