CalPERS Earmarks $25B for “Green” Projects 

CalPERS is planning to allocate over $25 billion to green-related private market investments, the FT reported. 

The U.S. public pension behemoth is eyeing private equity, real estate and infrastructure, with an emphasis in Asia and Europe, as it plans to deploy the capital over the next six years, a senior executive told the FT. 

“Those are the ones [private market assets] that have very evident climate investment opportunities,” Peter Cashion, CalPERS’ managing investment director, sustainable investments. 

CalPERS’ comments mark the first time it has publicly outlined how it intends to spend the additional $53 billion it pledged in November to grow its low-carbon asset portfolio. The revised target would increase the portfolio to $100 billion by 2030, noted the FT. 

“We’re expecting [private markets will] represent more than half of the $53 billion,” added Cashion. “It’s pretty significant.” 

In real estate, Cashion identified prospects in green buildings. “The measurement for what qualifies in your real estate portfolio as green is becoming easier,” he said. 

CalPERS will expand its investments in renewable infrastructure and consider private equity investments in companies that promote the transition to sustainable energy. 

CalPERS recently approved plans to increase its overall allocation to private markets to 40% from 33%.