Below is a copy of the public testimony delivered by Jakob Evans, Policy Strategist with Sierra Club California, at the CalPERS board meeting in March 2025:
Good morning, Board members. Thank you for the opportunity to comment today. My name is Jakob Evans, and I’m a Policy Strategist with Sierra Club California. I’m here today with interest and concerns about the implementation of CalPERS’ Climate Action Plan.
Your 100 billion dollar commitment to climate solution investments is commendable, and your leadership is valued now more than ever as we see the federal government backsliding on commitments to addressing the systemic risks of the climate crisis. Sierra Club wants to see this bold plan invest in solutions that will have the largest impact to improve our environment and support communities on the frontlines of climate change. We are concerned that the climate action plan, as of now, will not create meaningful change. As the climate crisis poses threats to both our planet and our economy, meaningful change in our economy is needed to protect beneficiaries’ retirements and the fund’s future.
It is disappointing to see fossil fuel companies included in the Climate Action plan. CalPERS has chosen to identify the same stock or bond holding as partially included and partially excluded from its “climate solutions” portfolio. Counting portions of holdings that have climate impacts as climate solutions doesn’t create a tangible effect on the green economy. More importantly, equity investments do not represent new or restricted capital that drives green activities.
Even more concerning is that CalPERS did not respond to requests for definitions of climate solutions or information on how the fund aims to reduce carbon emissions and climate risks.
This is a complicated topic, and we understand that CalPERS will need to be nimble and strategic about its investment decisions. To do this, though, there must be a dialogue between CalPERS and stakeholders across California. This requires transparency about how the Climate Action Plan is operating and what investments are being classified as climate solutions.
Transparency is essential to allow beneficiaries and the public the ability to understand how CalPERS’ investments will reduce climate impacts to the portfolio and what strategy the fund is executing to invest in proven technologies and climate investments.
- To achieve a Climate Action plan capable of creating meaningful change, CalPERS must:
- Adopt strong, science-based definitions of climate solutions
- Exclude companies on the Carbon Underground 200 list
- Annually disclose methodology and investments in all asset classes
- Commit to ongoing engagement with CalPERS plan participants and stakeholders to share updates and continue refining best practices
I have copies of a letter that elaborates on these points signed by 782 members and supporters from Sierra Club and The Alliance of Californians for Community Empowerment that I’d like to share.
We look forward to further dialogue about how the climate action plan can become more robust and transparent. Thank you.