Sustainable Investments Program
Sustainable Investments (SI) is a Total Fund Resource. We work with and across all asset classes providing centralized leadership and strategy related to environmental, social, and governance (ESG) issues for the entire CalPERS Investment Office. SI program staff:
- Guide sustainable investment practices and ESG factor integration into investment decision-making across the Total Fund
- Oversee research, engagement, and advocacy efforts on various SI topics
These documents outline the sustainable investment guidelines for integration of environmental, social, and governance (ESG) factors into the CalPERS Fund. ESG considerations are integrated into investment selection, contracting, and monitoring processes, which are subject to fiduciary principles. The guidelines integrate and supplement CalPERS' ESG 5 Year Strategic Plan (PDF), existing beliefs, principles and policies pertaining to ESG considerations, including CalPERS Investment Beliefs, Global Governance Principles (PDF), and United Nations-supported Principles for Responsible Investment (PRI). The guidelines are intended to evolve and adapt as industry best practices emerge.
The Sustainable Investment Research Initiative (SIRI) Library is a searchable database of over 700 academic studies on sustainability factors spanning four decades of research and which examine the impact of these factors on investment risk and return. There is a wide range of literature examining whether and how sustainability factors have an impact on risk and return for long-term investors like CalPERS. Our own discussions on this have highlighted the need for clarity on the definition of sustainability and its impact on investment risk and return across each asset class. In response, we launched SIRI and partnered with the UC Davis Graduate School of Management to conduct this review of evidence.