Investments
At CalPERS, we are leveraging the DEI Framework and Sustainable Investments Strategy to improve investment outcomes.
We are working to ensure all public companies we invest in have a level of board diversity reflective of each company’s business, customer base, workforce, and society, in general.
Through our corporate engagement process, we advocate for board diversity in terms of skills, gender identity, age, nationality, race, sexual orientation, historically under-represented groups, experiences, thoughts, perspectives, and competencies.
Key Highlights
- The CalPERS Investment Office made progress in improving corporate board diversity as follows:
- Succeeded with 73% of companies engaged since July 2017 to add at least one diverse director to their boards (584 of 800 companies)
- Partnered with CalSTRS, LACERA, and SFERS on the California Board Diversity Initiative to improve board diversity at S&P 500 companies regarding underrepresented groups
- Held directors at the companies we invest in accountable for lack of progress on improving corporate board diversity by:
- Voting against 197 directors at companies where diversity engagements did not result in constructive outcomes. By comparison, we voted against 214 directors in the previous fiscal year
- Filing and withdrawing board diversity proposals at two companies due to successful negotiations regarding board composition and related diversity disclosures
- Conducting CalPERS’ Diversity Director “Vote No” campaign targeted at 20 companies with multi-year unresponsiveness – resulting in six companies adding elements of diversity to their boards
- Running eight shareowner campaigns at non-responsive companies concerning board diversity
- CalPERS is leading the way and creating strategic partnerships that promote DEI as part of our Sustainable Investment Strategy. Together, we’re making big changes.
- 95% of Russell 3000 companies now have at least one female director compared to 78% in Q2 2017 (Q1 2021 Equilar data)
- 24% of Russell 3000 board seats are now held by women compared to 16% in Q2 2017 (Q1 2021 Equilar data)
- 100% of S&P 500 companies now have at least one female director on their boards (2020 U.S. Spencer Stuart Board Index)
- 47% of new independent directors at S&P 500 companies are from historically underrepresented groups (Source: 2021 U.S. Spencer Stuart Board Index)
- 30% of all S&P 500 directors are women, a new milestone (Source: 2021 U.S. Spencer Stuart Board Index)