CalSTRS Investments Studied for Low-Carbon Economy Opportunities

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System has released the results of a research study by Mercer examining ways to mitigate investment risk and maximize value in the face of our deteriorating global climate. Investing in a Time of Climate Change: California State Teachers’ Retirement System Portfolio Climate Change Risk Assessment seeks to gain better insight into the various investment implications presented by climate change. “To achieve a key element of the December 2015 Paris Agreement–keeping the increase in global average temperature well below 2°C relative pre-industrial levels–necessitates an expansion of policy action,” said CalSTRS Chief Executive Officer Jack Ehnes. “For institutional investors like CalSTRS, supportive policies will ease our ability to deploy appropriate capital to the market.” The tailored study estimates portfolio return implications under four climate change scenarios and recommends appropriate actions by drilling down to industry-level detail in each asset class within the CalSTRS portfolio to capture low-carbon economic growth opportunities and mitigate long-term risks.