Dozens of retirees, union members, and climate advocates used the public‑comment period to press the CalPERS Board to remove fossil fuel companies from its Climate Action Fund and to pursue full divestment. Callers — in person and by phone — contended that continued investments in fossil fuel firms contradict California climate goals, pose financial risk and undermine public health in frontline communities.

Speakers including Deborah Silvey, Quinn Ide and Trinity Smith (Fossil Free California and related groups), as well as SEIU callers and multiple CalPERS retirees, told the board that fossil‑fuel holdings were inconsistent with the state’s climate commitments. Megan Elsey, a CalPERS member, said: "Investing in fossil fuels is immoral. I would say it's akin to investing in slavery in the nineteenth century." Several speakers cited litigation that the state has filed against major fossil producers and urged the board to act on both moral and financial grounds.

Staff from the Sustainable Investments (SI) team responded with program updates and data. Peter Cashin summarized SI’s position that climate is a long‑term megatrend and reported that CalPERS’ climate‑solution exposure stood at about $59.7 billion, up from $50 billion the year prior, that emission intensity is down about 11% year over year, and that the newly launched Climate Transition Index produced a 16.2% total return in its first year while reducing carbon intensity by roughly 50% for that index comparison. SI staff emphasized integration across public and private asset classes, a suite of KPIs and the incorporation of labor principles into procurement and manager due diligence.

Both sides sought a mix of accountability and evidence. Public commenters asked for clearer definitions and negative screens to prevent fossil‑fuel assets or carbon‑capture tied to oil and gas from being counted as “climate solutions.” SI staff said they would refine definitions and metrics, expand disclosure, and publish supporting materials (fact sheets) for stakeholders. Several union speakers urged stronger enforcement of the board’s labor‑related principles and an accountability mechanism for managers who fail to meet responsible‑contractor standards — a point CalPERS staff is addressing through an RFP‑driven labor market study.

Tamara Sells, reporting on the Responsible Contractor Policy, told the board managers certified 100% compliance for FY24‑25 and reported $746 million paid to certified responsible contractors in the year; staff announced an RCP bidding‑opportunities website and a planned labor‑focused market study RFP with a target release window in March. SI staff also noted widespread manager attestation to CalPERS’ labor principles and continuing efforts to align stewarding activities across asset classes.

What happens next: staff committed to additional stakeholder materials (fact sheets), expanded reporting and an RFP process for the labor market study; SI will continue to refine climate solution definitions and report progress to the board. The public record will remain open via written submissions and the Dec. 4 stakeholder webinar that staff scheduled to explain impacts and next steps.