We are in the midst of a global economic revolution, a transition to a low-carbon economy driven by clean energy, battery storage, and sustainable fuels.
Trillions of dollars are needed to accelerate the deployment at scale of these technologies, presenting historic opportunities for investors eager to generate outsized returns.
CalPERS is one of those investors. CalPERS has now committed more than $53 billion toward such investments to generate outsized returns and help pay our members’ pensions.
“Climate represents the fourth economic revolution in our history,” Peter Cashion, CalPERS investment director for sustainable investments, said during a CalPERS Board of Administration meeting on November 18. “Climate change is creating new climate risks, but also significant investment opportunities.”
The announcement of new climate investments comes a year after CalPERS launched its Sustainable Investments 2030 Strategy. A key component of that strategy is the $100 Billion Climate Action Plan. Under the plan, CalPERS commits to:
- Doubling its total climate solutions investments to $100 billion by 2030.
- Identifying high-quality climate solution investment opportunities.
- Cutting the carbon intensity of the CalPERS investment portfolio in half by the end of 2030 to reduce the risks climate change poses to our assets.
- Achieving net zero emissions in the portfolio by 2050, where carbon emissions from investments are evenly balanced by carbon reductions from other investments.
CalPERS had $47 billion in climate solution investments at the plan’s launch in November 2023. Earlier this week, CalPERS announced it now holds $50 billion in climate solutions, along with legal agreements to invest an additional $3.6 billion.
The new investments, undertaken in partnership with various asset management firms, support initiatives focused on the clean energy transition. One of those investments will enhance power grid reliability across multiple Midwest and Mid-Atlantic states. Other investments involve sustainable fuels, renewables, and smart energy grids.
For more information, read the announcement released on November 18.