CalSTRS has applauded a decision by the SEC to improve disclosure of climate risk in securities filings, which passed by a 3-2 vote. The legislation is to improve corporate disclosure and accountability, which CalSTRS considers a first step in addressing the impact of climate change risk on its portfolio companies.
CalSTRS officials have said that addressing climate risk is key to maintaining long-term value from its investment holdings.
According to Jack Ehnes, CalSTRS CEO, ”The result of the SEC action is that there will be a consistent standard for companies to report climate risk, and that will help all investors make better-informed decisions,” Since 2003, CalSTRS and other institutional investors have urged the SEC to issue guidelines to help guide publicly traded companies on climate risk disclosure because of the risk it poses to the environment, society, economies and investments.
The California State Teachers’ Retirement System has a portfolio valued at $134.1 billion, the second largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 833,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts. |
