Pension Funds In California Win Fight Over Fossil Fuel Divestments

Three years ago, senator Lena Gonzalez of California had proposed a bill requiring two of California’s largest pension funds to divest of their investments in oil & gas. California Public Employees’ Retirement System (Calpers), with $504 billion in assets under management, and California State Teachers Retirement System (Calstrs), with $338 billion in assets under management would have been required to halt investments in oil & gas, and equally divest a combined $15 billion in current fossil fuel-related investments. The bill was stalled for various reasons. Calpers is already making efforts to combat climate change and has committed to invest up to $50 billion by 2030, while Calstrs said it is using its existing positions in energy companies to advance carbon reduction changes.

Such forced divestments would have required the pension funds to sell at a loss.