A coalition of environmental, labor and community groups urged CalPERS to tighten its Climate and Sustainability Plan, adopt explicit climate‑solution investment principles and exclude fossil fuel financing from the definition of climate solutions.

Speakers during the public comment period included Jacob Evans of the Sierra Club (Sierra California), Eric Lerner representing California Common Good and ACE, and multiple retirees and advocacy groups including Third Act Sacramento. The speakers praised CalPERS’ stated climate goals but said the plan lacked transparency and clear, enforceable standards that distinguish genuine climate solutions from investments that continue to finance fossil fuel production or rely on carbon offsets.

“Sierra Club has developed a set of principles for climate solution investments… Implementing a set of core principles would allow CalPERS to enhance its leadership,” Jacob Evans told the committee. Eric Lerner said the coalition supported those principles and asked CalPERS to prioritize renewable energy, green affordable housing and investments that benefit communities most affected by the energy transition.

Other commenters highlighted the size of CalPERS’ fossil‑exposed holdings and argued divestment would reduce both climate risk and financial risk. Several speakers cited recent reports and academic papers — including a 2022 Nature Climate Change analysis and a July Science‑Based Targets Initiative update — to argue that institutions must stop financing firms expanding fossil fuel production to align with a 1.5°C pathway.

Staff and trustees received the public comments; no board action was taken during the session. Commenters said they would continue engagement and expect to be part of ongoing stakeholder discussions as staff refines the climate action plan.