CalPERS announced Monday it has committed more than $53 billion toward investing in climate solutions as part of a growing global transition toward a low-carbon economy.
The milestone comes one year after CalPERS launched its $100 Billion Climate Action Plan. The plan is a key component of CalPERS’ Sustainable Investments 2030 Strategy which – in addition to identifying opportunities for growth – seeks to reduce investment risks by cutting the emissions intensity of the fund’s portfolio in half by the end of 2030 and achieving Net Zero emissions by 2050.
“The energy transition underway represents one of the biggest investment opportunities in history,” said CalPERS Chief Executive Officer Marcie Frost. “We are providing the capital necessary to plant the seed for the low-carbon economy of the future.”
CalPERS had identified $47 billion in existing climate-focused investments when the plan was launched last November. Those investments are now valued at $50 billion. In addition, CalPERS has made new commitments of $3.6 billion in climate solution investments over the past year, divided between private equity and infrastructure.
Through a partnership with Brookfield, a global investment firm that acquired a stake in FirstEnergy Transmission, the CalPERS plan provides support for initiatives focused on the clean energy transition, including investments to enhance power grid reliability across multiple Midwest and Mid-Atlantic states.
CalPERS climate investments also include a private equity investment partnership with TPG Rise Climate. The fund focuses on scaling climate solutions globally and the partnership seeks to invest and collaborate in opportunities across the fund’s core themes including energy transition, green mobility, sustainable fuels and molecules, and carbon solutions.
Climate solutions funded by CalPERS over the past year include an investment in Octopus Energy, a fast-growing renewable energy company based in the United Kingdom. The company uses an advanced operating system to power 6 million homes in the UK, 60 million homes globally, and is expanding its operations into the United States.
“We believe that making sound, long-term investments in climate solutions will generate outperformance while also providing the clean energy needed to meet the increased demands that people have for their homes, cars and technology,” said CalPERS Chief Investment Officer Stephen Gilmore.
Beyond the fully executed deals, officials are reviewing an additional $3.2 billion in climate-related investments. Some of these investments could be finalized in the coming weeks and months.
The $100 Billion Climate Action Plan seeks investments aimed at climate adaptation, transition, and mitigation efforts. The plan is a partnership between the CalPERS Sustainable Investments team and the teams that manage the fund’s various asset classes, working together to identify key investing opportunities.
