The California Public Employees’ Retirement System (CalPERS) announced an investment of around $10 billion to support the global transition to a low-carbon economy, including private market investments and customised public equity index.
The plan includes a $5 billion commitment to a customised Climate Transition Index for public equity investments, which will evaluate the risks and opportunities of the global energy transaction.
There are also nine private market commitments of over $1.1 billion in private market investments in the energy and supply chain sectors and an additional $3.6 billion in private market investments that is currently under review. CalPERS aims to invest $100 billion in climate solutions by 2030, enhancing accountability and reducing the carbon intensity of its portfolio by at least 50%.
Detailed discussions on the plan will be held at the CalPERS Board of Administration meeting on July 15.
“The CalPERS Climate Action Plan is designed to take advantage of the rapid growth in climate transition investment opportunities, the kind of high-quality investments that are essential in paying the retirement benefits promised to our members and their families,” said CalPERS Chief Executive Officer Marcie Frost.
