Florida state Treasury, Tallahassee, hired RiskMetrics to analyze the $3.4 billion in corporate bond holdings of its 20 external managers and its internal management for the financial impacts of climate change, according to a statement by Alex Sink, CFO of the state of Florida.
The corporate bonds are part of the $24 billion in Treasury funds overseen by Ms. Sink.
While financial returns will remain the primary consideration in evaluating fund manager performance, climate risk is being added as an integral component of prudent portfolio management, the statement said.
The treasury expects its managers will be able to demonstrate improvement in scores over time, the statement said.
The treasury funds arent part of the $163 billion in assets overseen by the Florida State Board of Administration, Dennis D. MacKee, FSBA communications director, said in an interview. The Florida SBA uses RiskMetrics to assist with its proxy-voting and corporate governance issues and through that process addresses some environmental issues in investing, Mr. MacKee said in an interview.
Tara Klimek, Florida treasury spokeswoman, couldnt be reached by publication time.