CalSTRS

The financial institution does not make political contributions and maintains a gender balance of 40-60% at the senior executive level. It has a plan to align its stewardship activities with its targets. Additionally, the institution assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body while the implementation of the strategy is delegated to specific functions, teams, or committees. Moreover, it has a stewardship policy covering client and stakeholder engagement, as well as advocacy and partnerships.

The institution discloses a list of the trade associations of which it is a member. It also transparently identifies the key sectors, clients, and investees for climate engagement and provides at least one example of how its products, services, and capital support climate adaptation and resilience in society. Additionally, the institution monitors other Scope 3 categories by category.

The financial institution has a publicly available policy statement committing to respect specific workers’ rights and has the opportunity to reference all ILO fundamental rights at work. It can disclose how it determines a living wage in its operational regions.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Although it has a stewardship policy that supports environmental transitions and social best practices, it has the opportunity to align the policy with its sustainability strategy. Additionally, the institution has targets referring to its provision of products, services, and capital for climate solutions but these could be made more well-defined with regard to time and/or measurability.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks.

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.