CalPERS Senior Portfolio Manager and Director of Global Governance, Anne Simpson, discusses how environmental, social, and governance behaviors impact corporate performance and highlights recent Board policy statements concerning three forms of capital: financial, physical and human.
Read the transcript on the CalPERS site.
Simpson says the fund now has a goal of integration for sustainability, which is a long way from the “scattered initiatives” of a few years ago. “The thinking is woven right through,” she says. “We are thinking about future members and pensioners and encouraging managers to do the same.”
CalPERS will also be pushing its managers further on cost and disclosure issues.
Another principle is that “costs matter” and as part of this all costs should be transparent. But Simpson points out that this is difficult in the private asset classes. “In these asset classes there is no disclosure of carry. We are pushing the thinking on this.” More at CalPERS: a new framework of economy.