CalPERS’ Climate Action Plan Includes Investments in the World’s Largest Oil and Gas Companies
New research details how CalPERS, the largest publicly-funded pension system in the country, has an ownership stake in major emitters and oil producers as a part of its so-called sustainability portfolio.
LOS ANGELES – While the CalPERS Board of Trustees has called on the fund to increase its sustainable investments and distance itself from volatile fossil fuel equities, a detailed analysis based on not-previously available data shows that the CalPERS climate solutions portfolio includes billions of dollars invested in many of the world’s most climate-endangering companies, including the five worst U.S. emitters of greenhouse gases, most of the world’s largest oil companies, and other major air polluters.
“It is CalPERS’ responsibility to protect the retirement investments and security of union members who contribute a portion of their paychecks to these funds. We know that fossil fuel investments are a risk to the fund, contributing to the negative effects of the climate crisis and generally worsening the quality of life in California,” said Bobby Dalton Roy of SEIU Local 1000, the union with the largest concentration of CalPERS beneficiaries including current workers and retirees. “We agree with CalPERS that the climate crisis is an existential threat to the stability of pensions in our state and we are deeply discouraged to see that CalPERS’ commitment to this shift, while substantial, is subject to manipulation. Tens of thousands of people lost homes in the recent Los Angeles fires caused by the climate crisis, including many who rely on CalPERS for retirement security and health benefits. A commitment to the status quo will hurt our members and our communities in California.”
Today, as California Common Good makes this information public, CalPERS beneficiaries, environmental leaders and local residents will hold demonstrations in Northern and Southern California drawing the connection between oil and gas drilling, climate change and devastating wildfire.
Using ashes collected from the Eaton Canyon Fire in Altadena, California artists will join fire survivors to paint murals. In Southern California, the painting will be led by local artist Eddie Aparicio who lost his home in the recent fire.
“I am a state worker, and the state employs me to help fight the climate crisis,” said Robin Pearce, a California Department of Public Health worker and SEIU 1000 member. “Everyone knows who is responsible for this crisis: fossil fuel companies like BP, Shell Oil, and Exxon. My pension fund is investing my retirement savings into those same companies. This is outrageous and I want them to stop.”
CalPERS’ Climate Fund Includes Climate Deniers
CalPERS staff announced its Climate Action Plan, a $100 billion investment in climate solutions, in November 2023, but so far had refused to provide details about investments included in this new portfolio.
According to documents provided by CalPERS in response to a California Public Records Act request from California Common Good, at least $3.56 billion in securities of companies that appear on science-based lists of the most dangerous emitters of greenhouse gases operating in the U.S. or worldwide. These holdings include most of the world’s largest oil and gas companies, among them:
BP
Chevron
Exxon Mobil
Marathon Petroleum
Occidental Petroleum
Shell Oil
Valero Energy Corporation
State-controlled oil and gas companies of Abu Dhabi, Brazil, China, Malaysia and Saudi Arabia
The Climate Action Plan also includes 52 of the 100 largest greenhouse gas (GHG) emitters operating in the U.S., among them the five worst, namely Berkshire Hathaway and the nation’s four most polluting utility companies: Vistra Corp., The Southern Company, Duke Energy and American Electric Power.
To date, CalPERS has only disclosed $25.7 billion worth of publicly traded “climate solutions” securities in their climate portfolio.
“Fossil fuels are not a climate solution,” said California Senate Majority Leader Lena Gonzalez. “To learn that the so-called Climate Action Plan includes public equities in most of the world’s largest oil and gas companies, including companies operating in our state that are endangering public health, is a disservice to the intent of the Board of Trustees, beneficiaries and to the hardworking people of California. CalPERS must embrace full transparency and take more powerful action toward real change.”
Seeking Transparency
California Common Good filed a California Public Records Act request in October seeking detailed information about CalPERS’ Climate Action Plan and on December 12, 2024, CalPERS disclosed under half of those investments by dollar value and it did not identify alternative (non-publicly traded) investments within that portfolio, arguing that alternative climate solutions investments are exempt from disclosure.
In response to a follow-up request, CalPERS released a complete list of all assets as of September 30, 2024, in its $532 billion retirement portfolio. This disclosure identified every alternative investment held by CalPERS, but it did not indicate which of those investments it deems to be climate solutions. In response to a third request, on January 10, 2025, CalPERS identified 11 alternative investments worth a combined $3.6 billion as “climate solutions.”
As a part of its effort for more transparency, California Common Good has detailed investment principles necessary to reducing emissions and improving climate resilience for its beneficiaries by mitigating economic impacts.
“We bring this information to CalPERS staff in the spirit of transparency,” said Crystal Zermeño with California Common Good. “Global energy is moving away from fossil fuels, no matter what the Trump Administration may be doing right now. Preparing for the long-term is in the DNA of a pension fund. We hope these disclosures lead to meaningful changes to safeguard the retirement security of fund beneficiaries and the taxpayers’ investment.”
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About California Common Good:
California Common Good (CCG) is an innovative coalition of labor, community and environmental groups, anchored by the Alliance of Californians for Community Empowerment (ACCE), United Teachers Los Angeles and AFSCME 3299. CCG is advancing coalition campaigns for housing justice, workers rights and climate action, with an emphasis on the interests and needs of low-income and working-class communities of color. Central to our strategic approach is working to hold big corporations accountable to the common good.
