One year into launching its $100bn Climate Action Plan, CalPERS, the $502.9bn pension plan for public sector workers in California announced that it has hit a crucial milestone, with some $53bn deployed in climate solutions.
CalPERS climate investment commitment is part of a broader ambition to half its carbon footprint by the end of the decade. The fund has had a significant head start, with $47bn having been invested in climate solutions already. In addition, CalPERS has made new commitments of $3.6bn in climate solution investments in private equity and infrastructure over the past year, the fund revealed.
Among others, CalPERS has entered into a partnership with Brookfield which has acquired a stake in FirstEnergy Transmission. As part of the deal, CalPERS has backed investments to enhance power grid reliability across multiple Midwest and Mid-Atlantic states.
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In addition, CalPERS has entered into a private equity investment partnership with the impact investor TPG Rise Climate. The partnership seeks to invest and collaborate in opportunities across the fund’s core themes including energy transition, green mobility, sustainable fuels and molecules, and carbon solutions.
Earlier this year, CalPERS also invested in Octopus Energy alongside the Australian superannuation fund Aware Super. Both funds jointly contributed $370m via their manager Generation Investment Management.
“We believe that making sound, long-term investments in climate solutions will generate outperformance while also providing the clean energy needed to meet the increased demands that people have for their homes, cars and technology,” said CalPERS CIO Stephen Gilmore.
Beyond the fully executed deals, the fund said it is reviewing an additional $3.2bn in climate-related investments to be finalised in the coming weeks and months.
CalPERS reveals further details of its $100bn climate investment pledge
