Home ListingSeptember 24, 2015

CalPERS Receives Top Score for ESG

The UN-backed PRI has awarded the $300 billion pension fund the highest grade possible for sustainable investing.<br />

Reported by Featured Author

America’s largest pension fund has earned top marks for its adherence to environmental, social, and governance issues.

The California Public Employees’ Retirement System (CalPERS) released the results of its 2015 Principles of Responsible Investment (PRI) Assessment Report Thursday. The $300 billion fund said it received an ‘A+’ for its overarching approach to responsible investment, the highest possible grade offered by PRI.

“A commitment to sustainable investing is ingrained throughout our investment beliefs.”PRI, an initiative backed by the United Nations, scores participating asset owners, investment managers, and professional service partners on their compliance with a set of standards for responsible and sustainable investment.

“We are proud of our exceptional score,” said Ted Eliopoulos, CIO at CalPERS. “A commitment to sustainable investing is ingrained throughout our investment beliefs.”

In addition to being a PRI signatory, CalPERS is involved with the Global Real Estate Sustainability Benchmark (GRESB). Earlier this month, the pension fund led a coalition of asset owners backing the GRESB’s new infrastructure benchmark.

Anne Simpson, investment director for global governance at CalPERS, said the fund’s PRI scores were indicative of its progress toward sustainable investment activity.

“We know this is an evolving field and there is still much work to be done,” said Simpson.

PRI signatories manage a collective $59 trillion in assets. As of June 2015, 286 asset owners had signed onto the initiative, representing $15.5 trillion in assets under management.

Other signees include the California State Teachers’ Retirement System and the New York City Employees Retirement System. Harvard University became the first endowment to join the organization in April 2014.