USA: California teachers' pension fund commits $2.5 billion to low-carbon index to align portfolio with climate change impacts
Author: CalSTRS, Published on: 19 July 2016
"CalSTRS Commits $2.5 Billion to Low-Carbon Index", 14 Jul 2016
The California State Teachers' Retirement System today committed up to $2.5 billion to low-carbon strategies in U.S., non-U.S. developed and emerging equity markets.The passively managed equity portfolio will be invested in an index designed to have significantly lower exposure to carbon emissions than the broad market and nearly complete reduction in exposure to fossil fuel reserves. Committing to a low-carbon index is part of a multi-faceted approach to align the portfolio with the market realities emerging from climate change and the policies which will result from the December 2015 COP21 Paris climate talks and the United Nations Climate Summit in September 2014, both of which CalSTRS participated in and fully support..."Climate change remains at the forefront of global economic concerns and ongoing discussions, and CalSTRS is investing its resources and influence behind the inevitable transition to a low-carbon, climate-resilient future..." [said CalSTRS Investment Committee Chair Harry Keiley.]...[A]s the global economy shifts to a low-carbon footprint, portfolios that have proactively reduced their carbon exposure are better positioned to outperform the broad market...