Investments
At CalPERS, we leverage the DEI Framework and Sustainable Investment Strategy to improve investment outcomes. We're working to ensure the public companies we invest in have a level of board diversity reflective of each company’s business, customer base, workforce, and society.
Through our corporate engagement process, we advocate for board diversity in terms of skill sets, gender identity, age, nationality, race, sexual orientation, historically under-represented groups, experiences, thoughts, perspectives, and competencies.
With strong partnerships, we provide an asset owner’s perspective on the significant questions of the day – congressional testimony, comment letters on proposed pieces of regulation, and commissioned research regarding sustainable investments and human capital management.
Key Highlights
- The CalPERS Investment Office made progress in improving corporate board diversity as follows:
- Succeeded with 78% of companies engaged since July 2017 to add at least one diverse director to their boards (620 of 800 companies).
- Continued partnership 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 133 directors at companies where diversity engagements did not result in constructive outcomes. By comparison, we voted against 197 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.
- Supported diversity related to shareholder proposals on racial equity audits, median gender/racial pay equity, and D&I reporting.
- Engaged S&P 500 companies with California partner funds surrounding board diversity and underrepresented groups.
- 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:
- 97% of Russell 3000 companies now have at least one female director (ISS Insights July 2022).
- 90% of Russell 3000 companies now have at least one racially/ethnically diverse director (ISS Insights July 2022).
- 100% of S&P 500 companies now have at least one female director on their boards (ISS Data July 2022).
- 100% of S&P 500 companies now have at least one racially/ethnically diverse director (ISS Insights July 2022).
- Participated in various forums to advocate for improved diversity in financial markets:
- Served as a panelist in the National Association of Securities Professionals Legislative Conference to discuss proposed legislation and regulations impacting financial markets.
- Concluded Lenox Park 2022 External Manager Diversity & Inclusion Survey. Initiated SIRI III research on human capital management and climate change, including the completion of asset class interviews and agreement on contract statement of work.
- Presented at “Partners in Policy: Strengthening Black Wall Street,” Economic Empowerment Day, and 1921 Tulsa Race Massacre Centennial Commission.
- Responded to the Securities and Exchange Commission climate-related disclosure consultations and elevated the issues of environmental racism and the treatment of indigenous people.