The $227.8 billion California State Teachers’ Retirement System has approved to study the implications of a transition to a low-carbon economy.
“CalSTRS’ belief that concerns about climate change and the transition to a lower carbon economy have the potential to impact the value of the investment portfolio,” stated agenda material for the meeting on March 8.
CalSTRS’ investment committee also approved adding a carbon pricing statement to its corporate governance principles to support its multiple climate change–related initiatives. The United States does not have a carbon pricing policy, while Canada is currently developing one.
“As a diversified global investor, we need to understand the transition’s potential impacts and consider actions we can take to mitigate risk and identify related investment opportunities,” said CalSTRS in a statement. “CalSTRS believes in the importance of establishing a stable and clear carbon pricing framework that appropriately prices the externalized cost to the global economy from greenhouse gas emissions.”