CalSTRS trustees on Thursday voted to sign on to the United Nations Principles for Responsible Investment, guidelines that provide a framework to incorporating environmental, social and governance issues into decision-making. The vote was first reported Thursday afternoon on Pensions & Investments website, pionline.com.
These principles truly recognize the value of acting now for investment strategies that will be the bulwark of our members retirement security in decades to come, Jack Ehnes, CalSTRS CEO, said in a news release. CalSTRS joins other institutional investors with todays action in underscoring the importance of environmental, social and governance issues as an essential part of good investment decisions.
In a memo to trustees, staff voiced concern that the policy, determined by outsiders, would trump the internal investment policies of the $176 billion California State Teachers Retirement System, Sacramento. However, staff also noted that the UN-PRI policies are closely aligned with the funds existing investment policy and urged trustees to sign on.
CalSTRS joins 13 other U.S. plan sponsors and 80 non-U.S. investors that have already signed.