A stream of public commenters urged the CalPERS investment committee to strengthen its climate investing approach and to move faster on divestment from fossil fuels. Dozens of speakers during public comment criticized the fund’s fossil‑fuel holdings and requested clearer rules to define “climate solutions.”

Speakers and demands: Jacob Evans (Sierra California) and Eric Lerner (California Common Good) asked the board to adopt a published set of climate investment principles that would exclude certain asset types they described as “unproven,” such as carbon offsets, and would steer capital toward renewable energy and green, affordable housing. Evans described CalPERS’ “ambitious $100,000,000,000 commitment” to climate solutions and urged better internal transparency and published definitions for investments that qualify as climate solutions.

Several retirees and civic leaders — including Sally Callaghan, Mark Davianini, Linda Hayward, Preston Rudy and Dr. Goli Saba — told trustees CalPERS’ multi‑billion dollar holdings in fossil fuel companies are inconsistent with California’s climate goals and expose the fund to long‑term financial risks. Speakers repeatedly invoked recent research and coalition statements (some slated for publication) as justification for excluding financing of new fossil fuel production and for favoring investments that directly lower emissions or build resilience in affected communities.

Why the speakers say it matters: Commenters cited financial risk from a possible long‑term decline in fossil‑fuel demand and potential stranded assets, and argued that CalPERS should align investments with state climate policy and support a just transition in regions that will be affected by energy shifts. Several speakers asked that the fund prioritize investments “that reduce bills, build affordable housing and strengthen resilience” in communities they said will be most affected by the energy transition.

Staff and board response: At the meeting, staff acknowledged ongoing work on the Climate Action Plan and sustainable investment strategies and said teams are engaging with external managers and stakeholders. Trustees and staff noted that climate and labor standards are part of ongoing portfolio management and that the fund is working to harmonize expectations across public and private markets, including labor‑principle attestation for external managers.

Discussion versus decision: public commenters requested policy changes and clearer definitions for climate investments; no board action on divestment or new climate exclusions was taken at this meeting.

Ending: Commenters requested continued engagement and said they would circulate a coalition statement endorsed by environmental, labor and community groups. Staff said it will continue engagement and stakeholder webinars on ALM and investment strategy.