Investments

How We Protect Our Investments

Infographic depicting the risks that CalPERS investments face due to catastrophic climate events that could negatively impact our real estate holdings.

Researching climate trends. Engaging with carbon emitting companies. Working with the U.S. Securities and Exchange Commission to improve corporate reporting. What do these three things have in common?

All three are actions taken by CalPERS to help us make the best investment decision for the long-term sustainability of the Fund. We do this because the health of a company isn’t just reflected in its balance sheet. It includes how it is dealing with issues that can impact the bottom line today and for years to come.

Is it planning for climate change issues that may impact their business model? Is it compliant with regulations? Are workplace issues affecting efficiency? Important questions like these help our investment team obtain a deeper understanding of the risks the companies we invest in face.

Just as you want to know if the house you’re buying has a cracked foundation or leaky roof, CalPERS wants to understand how well our investments will stand the test of time.

We have a fiduciary duty to minimize risk in our portfolio and take advantage of opportunities on behalf of our 1.9 million members. That’s why we work to manage our investments for sustainable returns.

To learn more about why and how CalPERS is working to protect our investments, read Managing Investments for Sustainable Returns.