Addressing global climate change is difficult and costly. Success requires an environment that encourages many ideas and experiments to flourish. Mandates from CalPERS undermines such an environment to the detriment of investors, the economy, and the environment.
Is CalPERS Still A Responsible Fiduciary?
A new CalPERS proposal would “more than double its climate-focused investments to $100 billion by 2030” and “consider selling stocks in companies with poor plans for the energy transition.” The underlying logic for implementing this strategy is, apparently, that the investment giant already knows how to address the complex problem of global climate change and that companies that do not address climate change are going to perform worse financially.
Both assertions are demonstrably false.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.