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The California Public Employees' Retirement System (CalPERS) today announced that it has again earned an 'AAA' grade from the Asset Owners Disclosure Project (AODP), 1 of only 12 organizations to do so, ranking ninth on the organization's index of the world's 500 largest asset owners.
The AODP is an independent, not-for-profit global organization whose objective is to protect beneficiaries' retirement savings from the risks posed by climate change by improving the level of disclosure and promoting investment best practices. AODP sends the survey to the world's 500 largest asset owners. Participants include pension, superannuation, insurance, and sovereign wealth funds.
"We are once again very proud of CalPERS 'AAA' ranking for our work on climate change," said Anne Simpson, CalPERS Investment Director of Global Governance. "As long-term fiduciaries, we need to consider both the risks and opportunities that climate change brings. We will continue with our work to integrate, to advocate, and to engage to ensure our portfolio is well positioned to manage those risks and to take those opportunities."
The survey is comprised of approximately 40 questions covering three key areas assessing the asset owner's capability in managing portfolio climate risk: engagement, portfolio carbon risk management, and low-carbon investments. Data is sourced from public information as well as disclosures that funds provide through the survey. The data is analyzed and ratings are applied to all funds.
The survey provides participants with valuable insight into the strategies deployed by some of the largest asset owners in the world in relation to climate change. The survey also encourages funds to engage in climate change-related issues, often for the first time. Find more information on the survey and rankings on the Asset Owners Disclosure Project website.
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.8 million members in the CalPERS retirement system and administers benefits for nearly 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS’ total fund market value currently stands at approximately $292 billion. For more information, visit www.calpers.ca.gov.
