What CalSTRS’ low-carbon plan says about US investor priorities

Partner, Susan Swanezy contributed to this article.

Climate concerns have historically been an afterthought for North American capital, but that is changing as evidenced by the $240bn pension’s new sustainability plan.

The California State Teachers’ Retirement System is taking the lead among US institutional investors to reduce its carbon footprint and mitigate exposure to rising environmental threats such as coastal flooding, hurricanes and wildfires.

CalSTRS’ adoption of a low-carbon plan earlier this month comes after California governor Gavin Newsom signed an executive order in September requiring CalSTRS and the California Public Employees’ Retirement System – the two biggest US investors – to devise sustainability plans. Such measures are not uncommon for similar-sized investors globally, but CalSTRS is one of the few US institutions to adopt a formal policy on climate change to date.

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