CalPERS Global Equity staff renegotiated contract guidelines to include language related to the integration of ESG considerations into the investment decision-making process. The additional language also requires managers to participate in annual discussions with Global Equity staff on the results of integration. Additionally, staff provides copies of CalPERS Global Principles and Investment Beliefs and required our external managers to consider the Principles and Beliefs when making investment decisions.
CalPERS has a deep interest in the condition of workers employed by CalPERS and investment managers at its Real Estate and Infrastructure investments. CalPERS, through the Responsible Contractor Program (RCP) Policy, supports and encourages fair wages and benefits for workers employed by its contractors and subcontractors, subject to fiduciary principles. CalPERS believes that an adequately compensated and trained worker delivers a higher quality product and service. The RCP Policy applies to all domestic Real Estate and Infrastructure investment managers, joint ventures, and partnerships where CalPERS has greater than 50% ownership interest and the standards of the RCP Policy are met.
CalPERS provided an update to the Sustainable Investment Practice Guidelines and CalPERS Principles that encourage external managers to develop an ESG policy and integrate ESG considerations into its investment decision-making process.
Asset Class Sustainable Investment Guidelines:
CalPERS Principles: https://www.calpers.ca.gov/page/investments/about-investment-office/policies