Climate pledges detailed in CalPERS' $3.6 billion expansion

CalPERS Increases Investment in Climate Solutions with Octopus Energy

California Public Employees' Retirement System (CalPERS) has made a significant investment in Octopus Energy, a UK-based digital energy company. The investment was made via Generation Investment Management, and was accompanied by Aware Super.

This move is part of CalPERS' ongoing commitment to investing in climate solutions. In recent months, the fund has partnered with several firms for investments in private equity and infrastructure, including BlackRock and Brookfield.

CalPERS' Chief Investment Officer, Stephen Gilmore, stated that the fund believes in long-term investments in climate solutions for outperformance and clean energy. This aligns with CalPERS' goal to reduce its carbon footprint by half by the end of the decade.

To achieve this goal, CalPERS has committed $100bn to its Climate Action Plan. As of now, CalPERS has invested $47bn in climate solutions previously, and has recently committed an additional $3.6bn in the past year.

In addition to the investment in Octopus Energy, CalPERS has also entered into a private equity investment partnership with TPG Rise Climate. This partnership seeks to invest and collaborate in opportunities across energy transition, green mobility, sustainable fuels and molecules, and carbon solutions.

Through its partnership with Brookfield, CalPERS has backed investments to enhance power grid reliability across multiple Midwest and Mid-Atlantic states.

CalPERS continues to review an additional $3.2bn in climate-related investments for potential investment in the coming weeks and months.

For those interested in learning more about CalPERS' commitment to climate solutions, the NZI DC Forum will take place on Thursday 30 January at Stationer's Hall London, and registration is available.

With these investments, CalPERS has now invested a total of $53bn in climate solutions. The fund's ongoing commitment to climate solutions reflects its belief in the importance of a sustainable future and the potential for long-term returns in this area.