"In November the California Public Employees Retirement System announced it invested $60 billion in "climate solutions," toward a goal of $100 billion by 2030. While the announcement highlighted several deals, the pension's overall strategy remains shrouded in secrecy. As the largest public pension in the U.S., what CalPERS does has major impact. Yet it does not disclose a complete list of its climate-focused investments, nor the criteria it used to select them."
"When asked how CalPERS defines climate investments, its staff points to a "taxonomy of mitigation, transition and adaptation" - meaning investments that reduce carbon emissions, support cleaner technologies for polluting businesses and help communities adapt to climate impacts. This taxonomy captures the right themes but is a woefully sparse definition for a pension that prides itself on climate leadership."
"Climate finance around the world faces credibility challenges. Research has found climate dollars going to everything from airports to ice cream shops. CalPERS can and should do better. The Sierra Club and the California Common Good coalition have asked CalPERS to be more transparent and adopt science-based principles to guide its climate investment strategy. That became more important after research revealed CalPERS' climate plan included $3.56 billion invested in fossil fuel companies, as well as in airlines, plastics manufacturers and tech companies."
CalPERS announced $60 billion invested in 'climate solutions' toward a $100 billion 2030 goal while withholding a complete list and selection criteria for those investments. The pension's working definition centers on a 'taxonomy of mitigation, transition and adaptation'—investments that reduce emissions, support cleaner technologies in polluting industries, and help communities adapt. The taxonomy captures broad themes but provides few specifics. Advocacy groups have urged greater transparency and science-based principles after research found $3.56 billion invested in fossil fuel companies and related sectors. Pension funds face outsized climate-related financial risk, with studies projecting returns could decline up to 50% by 2040.
Read at San Jose Inside
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