Investments News & Events

The Challenge of Counting Climate Solutions

CalPERS East and West Buildings in Sacramento

By Marcie Frost, CalPERS Chief Executive Officer

We have long said that climate change presents a significant risk to the CalPERS investment portfolio, one we must carefully assess as part of our fiduciary duty.

But it also presents opportunity, an approach that’s at the heart of our $100 Billion Climate Action Plan. The plan was launched in the fall of 2023 to strengthen our returns by investing in the global energy transition over the next six years.

One thing we’ve learned is that there’s more art than science in defining an investment to count as a “climate solution” – the kind of variation that may seem reasonable in financial circles but perplexing to those seeking simple, common-sense ways to track our climate commitments.

Read the full For the Record article.