California State Teachers' Retirement System hired three ESG-focused global equity managers to run a total of $750 million, said Michelle Mussuto, spokeswoman for the $226.1 billion West Sacramento-based pension plan.
Hermes Asset Management received a $300 million mandate, Schroder Investment Management North America received $250 million and Impax Asset Management got $200 million.
The three managers are the first to be funded from an eight-manager pool created in February 2018 to execute specific strategies focused on environmental, social and governance investments as opportunities arise. CalSTRS could eventually invest a total of $1 billion to pool managers to diversify its $6 billion sustainable investment mand stewardship strategies portfolio.
"The three firms … are highly attuned to how sustainability-related trends, like the low carbon transition and resource efficiency, create investment risks and opportunities," said Kirsty Jenkinson, director of sustainable investment and stewardship strategy at CalSTRS in a news release.