The Sustainable Investments (SI) Program helps the Investment Office deliver returns through the identification, analysis, and management of high-value sustainable investment risks and opportunities that may affect our investment returns.  

The SI team implements this in four ways:

  • Research to understand how a topic may affect our investments.
  • Integration of environmental, social, and governance (ESG) risks and opportunity considerations into investment decision-making.
  • Engagement with companies and managers to understand, mitigate, and/or manage ESG risks and opportunities.
  • Advocacy with government bodies and standard setters on topics that can affect our returns.

Functional Organization

As a Total Fund resource deployed to meet a variety of high-value needs for the Investment Office, the SI team leverages our expertise across a wide-range of sustainable investment topics, including human capital, climate change risk, integrated reporting, and financial market structures. We:

  • Act as problem solvers who connect the dots across and between SI topics and investments, both proactively and reactively.
  • Help our Investment Office to clearly identify and understand sustainable investment drivers that can impact long-term profitability.
  • Work with our asset classes to identify opportunities to make attractive returns while also having a positive impact on society and the environment.
  • Work closely with Global Public Equity's Corporate Engagement Program on developing engagement strategies for sustainable investment issues, particularly emerging ones, that affect our publicly traded portfolio.

Strategic Priorities

The CalPERS 2022-27 Strategic Plan (PDF, 1.3 MB) addresses management of our investment portfolio in a cost-effective, transparent and risk-aware manner.

The integration of sustainable investment strategies is integral to strengthening the long-term sustainability of the pension fund. Sustainable investment strategy integration is highlighted in the CalPERS Strategic Plan as a dedicated objective with multiple performance measures.