CalSTRS defines sustainability as the framework that governs our organizational business culture. Sustainable objectives are fully integrated into our everyday business practices at every level of our business operations.
From member services to investment strategy, our sustainable practices seek to create long-term value, promote stewardship of our natural resources and sustain the financial integrity of the fund for the benefit of our members and our community. We believe that establishing a corporate environment with sustainable values is a blueprint for better governance and increased profitability.
CalSTRS also recognizes that environmental, social and governance (ESG) issues, also known collectively as sustainability issues, affect the performance of the investment portfolio to varying degrees across companies, sectors, regions and asset classes. CalSTRS engages corporations, regulators, policy makers, and fellow investors on a variety of sustainability issues with the goal of increasing the level of awareness and importance that the global investment community places on sustainability considerations.
CalSTRS Green Initiative Task Force is an internally staffed team that incorporates all asset classes of the CalSTRS Investment Office. The mission of the Green Initiative Task Force is to manage the risks and capture the opportunities associated with climate change and other environmental issues by identifying environmentally focused investments and risk mitigation strategies intended to enhance the risk-adjusted returns of the overall CalSTRS portfolio.
CalSTRS has incorporated the PRI and other ESG principles into its investment policies and practices. Along with the PRI, CalSTRS works closely with organizations such as the Carbon Disclosure Project (CDP) and Ceres to improve the transparency and disclosure of environmental risk data by corporations