CalSTRS could become one of the next big institutional investors to divest from ownership interests in coal companies.
The investment committee of the $190.8 billion California State Teachers' Retirement System, West Sacramento, will discuss Friday whether it should begin a study that could lead to the divestment of thermal coal companies.
The study, which could take eight months, follows action by other major asset owners to at least partially divest from coal stocks, including Norway's $798 billion Government Pension Fund Global, Oslo, and Stanford University's $25 billion endowment and other trust assets.
CalSTRS has invested $40 million in 12 companies that meet the definition of “thermal coal companies,” said Ricardo Duran, a CalSTRS spokesman, in an e-mail.
California state Senate President Pro Tem Kevin de Leon in February introduced legislation targeting both CalSTRS and the $301.7 billion California Public Employees' Retirement System, Sacramento, requiring them to divest holdings in thermal coal companies.
CalPERS officials previously rejected calls by environmental organizations to divest from fossil-fuel stocks, including coal.