"Information is a necessary tool for investors," said Rob Feckner, Acting President of CalPERS. "Shareowners need information on environmental liabilities to make informed investment decisions and assess costs associated with the impact to the environment."
Under the plan, CalPERS will pursue the following initiatives aimed at improving environmental data transparency. They include:
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Signing on to the Global Carbon Disclosure Project, an international effort to improve transparency of business risks associated with climate change due to rising levels of greenhouse gases (GHG).
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Improving data transparency in the auto industry by supporting shareholder proposals at Ford and General Motors and possibly other auto manufacturers.
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Exploring opportunities to develop a model greenhouse gases reporting project that ensures timely and standardized disclosure of environmental data in the Utilities industry; and
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Recognizing individual companies that demostrate best practices in environmental data transparency.
"We expect environmental corporate stewardship to play a greater role in corporate governance over the next ten years," said Priya Mathur, Vice Chair of CalPERS investment committee. "Data on the corporate environmental impact will be one of the best sources for investors to measure related investment risks."
CalPERS push for increased transparency is the latest environmental investing initiative approved by the pension fund. Last year, CalPERS launched a $200 million Environmental Technology Program that will target private equity investments in environmental technology solutions that are more efficient and less polluting than existing technologies.
CalPERS is the nation's largest public pension fund with assets of $182 billion. The System provides retirement and health benefits to more than 1.2 million State and local public employees and their families. For more on CalPERS, visit www.calpers.ca.gov.
