CalPERS Unveils $100B Climate Initiative

The California Public Employees’ Retirement System (CalPERS) recently announced $10 billion in investment activity related to the energy transition, including private market investments.

The plan, which seeks a $100 billion investment in climate solutions by the end of 2030, includes various preliminary actions as well as the establishment of a “enhanced accountability” procedure for businesses to reveal and strengthen their strategies for navigating the energy transition, pension officials said.

Within private markets, nine agreements totaling more than $1.1 billion were inked for investments in sectors supporting energy production and distribution, as well as freight and supply chain efficiency. Investments totaling $3.6 billion are now being reviewed. Some of these investments are scheduled to be completed within the following weeks and months.

CalPERS, which oversees $502 billion in client assets, had almost $47 billion in climate solutions at the start of the plan in November 2023. By the end of 2030, that figure will have more than doubled, and the carbon intensity of the pension fund’s portfolio is scheduled to fall by at least 50%.

“The CalPERS Climate Action Plan is designed to make our pension fund the global partner of choice in climate investing,” said Peter Cashion, managing investment director of the CalPERS Sustainable Investments Program. “To do that, we need a diverse set of investments and tools to generate the excess returns that are achievable during this historic transition to a low-carbon future.”