CalPERS has invested $53 billion towards climate solutions, more than halfway to its $100 billion target. However, it faces calls to stop purchasing ExxonMobil bonds, which critics argue fuel the climate crisis.
The California Public Employees’ Retirement System (CalPERS) has surpassed $53 billion in investments aimed at addressing climate change, more than halfway toward its $100 billion climate goal. The announcement, made on November 18, highlights the pension fund’s commitment to sustainable investing as part of its broader 2030 strategy.
Despite this progress, CalPERS is facing growing pressure from its beneficiaries and climate organizations to cease investing in bonds issued by ExxonMobil. Critics argue that these bonds finance oil and gas expansion, with some having maturities that extend beyond CalPERS’ 2050 net-zero target.
Since setting its $100 billion target, CalPERS has invested $3.6 billion in climate solutions, focusing on private equity and infrastructure, and committed an additional $3.2 billion. These investments are part of the fund's broader efforts to accelerate the transition to a low-carbon economy. CalPERS CEO Marcie Frost emphasized that the energy transition is “one of the biggest investment opportunities in history,” and that long-term investments in climate solutions will generate both financial returns and clean energy for future needs.
CalPERS has also made strategic investments in companies like Octopus Energy and partnered with climate funds such as TPG Rise Climate and Brookfield Asset Management. However, environmental groups like the Sierra Club continue to push for the pension fund to cease its investments in ExxonMobil bonds, which they argue contribute to the climate crisis.
The controversy highlights a growing conflict between long-term investment goals and the urgent need to address climate change.
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