Towards Sustainable Investment 2012
This year marks CalPERS 80
birthday, but while we celebrateour past our ocus is irmly on the long horizon.
Both now and in the coming decades, the prime duty o our und is tocontinue to meet its ﬁnancial commitments to members and uturemembers. Sustainability in its simplest orm is the ability to continue,and or a long-term investor like CalPERS with long-term liabilities,it’s at the heart o what we do.
We have a proud history o leadership and innovation in sustainable investment. Wehave been engaging directly with companies on environmental, social and governanceissues or many years and are ounding members o global networks such as the UnitedNations-backed Principles or Responsible Investment (PRI). With our new “total und”approach to sustainable investment, explained in this report, we believe we are againtaking a leadership role in this important area. On page 36 is an index showing whereyou can ﬁnd details on each o our PRI commitments.Still, we tackle the challenge o sustainable investment with a great deal o humility.Sustainability issues are oten complex and global in nature and no single actor hasthe power to solve them. What’s more, the CalPERS Fund encompasses a wide arrayo investment strategies, asset classes and capital orms, some o which are still atthe very beginning o the journey towards genuinely sustainable investment.This report creates a baseline or this journey. It explains the ﬁduciary rameworkwe have adopted to integrate sustainability across the total und, sets out the strategicthemes, illustrates achievements rom the last ew years and outlines our vision orthe uture. We also explain how we integrate ESG into our own operations in thesections, “CalPERS Putting Principles into Practice.”This is no small undertaking. It’s a journey that will need CalPERS to make complexchanges to its own internal operations, and will need continued collaboration andpartnership across both the private and public sectors. It will require us to redoubleour eforts to think creatively and boldly about how we capture the opportunities andaddress the risks posed by sustainability challenges. We aim to be a principled andefective investor guided by our Core Values. Our sustainability objectives are intendedto help us achieve those long-term risk adjusted returns on which our members rely.We welcome your comments and ideas. Please send them to Anne Simpson, ourDirector o Corporate Governance, atGlobal_Governance@calpers.ca.gov.
Rob Feckner Anne StausbollJoseph Dear
A MESSAGE FROM CalPERS LEADERS
CalPERS Board President
CalPERS Investment Committee Chair
Chie Executive Of cer
Chie Investment Of cer