CalSTRS has started to implement a work plan to manage climate-related risks and identify investment opportunities across asset classes in the anticipated transition to a low carbon-based economy, a news release shows.
The work plan initiated by the $238.3 billion California State Teachers' Retirement System, West Sacramento, at its Oct. 3 off-site meeting includes building consensus among the board and staff about how the low-carbon transition will impact CalSTRS' investment portfolio, analyzing the "transition readiness" of its portfolios and together with partners, locally and worldwide, working with public policymakers and corporations for an equitable low-carbon transition.
Among the actions CalSTRS has already taken are its leadership role in Climate Action 100 Plus, a coalition of global institutional investors working to get the world's largest greenhouse gas emitters to reduce their carbon emissions in compliance with the Paris Agreement.
CalSTRS has also invested more than $2 billion in 2016 to an internally managed public equity low-carbon index and close to $2 billion in sustainability-focused investment strategies, including about $288 million in green bonds and $364 million of its inflation-sensitive asset class in solar, wind and other renewable power generation and LEED-certified assets. CalSTRS had $5.9 billion in its inflation-sensitive asset class as of June 30.
CalSTRS has invested more than $500 million in a clean-energy strategy that is part of its $21.7 billion private equity portfolio.