CalPERS

The financial institution publishes an engagement report detailing outcomes related to sustainability impact topics and has a publicly available policy statement committing to respect ILO core labour rights. It maintains a gender balance of 40-60% at the senior executive level and assigns decision-making and oversight responsibility for its sustainability strategy to its highest governance body. It has a stewardship policy which supports environmental transitions and social best practices, covering client and stakeholder engagement, advocacy, and partnerships. The institution discloses its positions on lobbying and political engagement activities concerning sustainability topics and identifies key sectors, clients, and investees for climate issue engagement. It monitors emissions from associated financing activities (Scope 3 category 15) and discloses operational data by country, including employee numbers and revenue.

The financial institution has the opportunity to disclose its method for determining a living wage in its operational regions. It prohibits bribery and corruption but could formalise this commitment in a public policy document and include relevant clauses in contracts with business partners. Although evidence of third-party assurance or verification exists, it is unclear if the targets are adequately covered.

Moreover, it is recommended that performance criteria for senior executive remuneration be linked to specific sustainability targets. While the institution states it does not use lobbying to create adverse sustainability impacts, it lacks a formal commitment. It has time-bound and measurable targets for climate solution investments but should clarify the connections between these solutions and climate mitigation, as well as specify the amount dedicated to such efforts.

Recommendations include disclosing a process for identifying social risks related to its products, services, and capital in the context of the net zero transition. Additionally, it is advised that the institution provide an example of conclusions and actions taken regarding at least one salient human rights issue from its assessments in the past three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.