The California Public Employees' Retirement System (Calpers) has labeled over $3 billion of its holdings in major fossil fuel companies, including Saudi Aramco and Chevron, as climate-friendly investments. A coalition report urges Calpers to divest from these companies, citing a misalignment with the pension's climate goals. Despite pledging to increase its climate investments to $100 billion, the current portfolio contains 52 top greenhouse gas emitters, raising concerns among climate advocates about the classification of these holdings. This practice is based on accounting methods evaluating companies' green activities rather than their overall impact on climate.
Calpers has set ambitious targets to be a leader in green investments, with a goal of doubling its climate-related holdings to $100 billion by the end of the decade.
It was meant to invest in companies leading the transition to a low-carbon economy. Clearly, fossil fuel companies are not.
The investments are part of an accounting method the fund uses that allows it to classify portions of public equities as climate investments based on the companies' green business activity.
The pension's $26.1 billion tally of stocks that it considers climate solutions includes 52 of the world's largest greenhouse gas emitters.
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