The California Public Employees’ Retirement System’s (CalPERS) mission is to deliver retirement and health benefits to members and their beneficiaries. For more than eight decades, CalPERS has been a respected partner, providing a sustainable retirement system for state, school, and public agency members who invest their lifework in public service. CalPERS serves more than 2 million members in the retirement system and administers health care benefits for 1.5 million members and their families. CalPERS is the largest defined-benefit public pension system in the U.S. CalPERS' total fund market value currently stands at approximately $423 billion.
Marcie Frost

Marcie Frost

CalPERS, Chief Executive Officer

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We believe it is vital to state clearly to the world the set of our beliefs about Inclusive Capitalism. As such, we start with our Statement of Guiding Principles for Inclusive Capitalism. Knowing that words alone are not enough, each of us is making a series of commitments about how we will operate our institutions so that they help achieve Inclusive Capitalism. These commitments are forward-looking statements based on current goals, expectations and assumptions, which are not guarantees of future performance. For more information, please refer to our Terms of Use

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Summary

Fund Sustainability: 100% funding in the next 30 years

Objectives

Fund the System through an integrated view of pension assets and liabilities Mitigate the risk of significant investment loss Deliver target risk-adjusted investment returns Review investment strategies to ensure value creation Streamline operations to gain efficiencies, improve productivity, and reduce costs Take advantage of factors that materialize slowly such as demographic trends

Metrics & Targets

100% funding in the next 30 years Meet or exceed projected fund status of the Public Employees Retirement Fund (PERF) based on actuarial valuation reports Current total expected fund volatility of 8 percent or less Meet or exceed the total fund policy benchmark Maintain a weighted Cost Effectiveness Measurement pension complexity score between 67-71 percent CalPERS Pension Belief 1 A retirement system must meet the needs of members and employers to be successful. CalPERS Pension Belief 5 Funding policies should be applied in a fair, consistent manner, accommodate investment return fluctuations and support rate stability.

SDG Focus Area(s):

Summary

CalPERS is committed to affordable, quality healthcare and will strive to control annual premium cost increase to Consumer Price Index for medical care plus 3 percent.

Objectives

Commitment to affordable quality healthcare

Metrics & Targets

Control annual premium cost increase to Consumer Price Index for medical care plus 3 percent Restructure benefit design to promote high-value health care Improve the health status of CalPERS employees, members and their families, and the communities where they live Reduce the overuse of ineffective or unnecessary medical care Historical References Of surveyed CalPERS members, 90 percent have access in the last 12 months to immediate and routine care when needed Of CalPERS members who are diabetic, 70 percent report that they check their blood glucose or sugar at least once a day Of surveyed CalPERS members, 90 percent rate their overall health as good, very good, or excellent CalPERS Health Belief 2 Health benefit plan designs should improve member health outcomes, maximize quality, and reduce unwarranted care. CalPERS Health Belief 4 Health plans shall encourage healthy life choices and provide access to essential health care and evidence-based health services.

SDG Focus Area(s):

Summary

CalPERS is committed to Talent Management and Diversity. We plan to increase employee engagement survey score average related to diversity and inclusion by 1.6 percent annually (8 percent by 2022).

Objectives

CalPERS is committed to Talent Management and Diversity. Recruit and empower a broad range of talents to meet CalPERS priorities Cultivate leadership competencies and develop succession plans Enhance total fund performance by increasing board diversity

Metrics & Targets

Increase employee engagement survey score average related to diversity and inclusion by 1.6 percent annually (8 percent by 2022) Of CalPERS employees surveyed, more than 59% rate the organization in the high performing category. All public companies that CalPERS invests in have a dimension of board diversity Appoint CalPERS’ first Chief Diversity & Inclusion Officer

SDG Focus Area(s):

Summary

CalPERS is the co-founder of Climate Action 100+. We are committed to leading the engagement with 22 companies on their commitment to net-zero emissions by 2050.

Objectives

Review and conduct research on emerging sustainable investment issues and opportunities, prioritizing topics with the highest potential financial value to CalPERS Guide and support sustainable investment practices and environmental, social, and governance (ESG) factor integration into investment decision-making processes Lead advocacy efforts on various sustainable investment and financial markets topics Conduct engagements with companies, external managers, and stakeholders, prioritizing resources toward topics with the highest potential financial value to CalPERS Partner with global organizations to share experiences, pool resources and magnify our influence and voice

Metrics & Targets

All public companies in which CalPERS invests have a dimension of board diversity All external managers have policies and procedures for including ESG information in decision making All Climate Action 100+ companies to achieve net zero emissions by 2050 All CalPERS asset classes establish and implement documented procedures for ESG due diligence, contracting and monitoring activities CalPERS Investment Belief 4 Long-term value creation requires effective management of three forms of capital: financial, physical and human

SDG Focus Area(s):

Summary

Trusted Leadership and Transparency: Five-year goal to achieve a score of 5.43 out of 7 on our stakeholder assessment survey regarding risk

Objectives

Educate employers, members, and stakeholders on system risks (Investment Risk, Employer Affordability, Climate Change) and mitigation strategies Hold and webcast public board meetings Identify opportunities for increased stakeholder engagement that ensures access, transparency and mechanisms for feedback and listening. Provide education and ethics training to leadership and board members

Metrics & Targets

Five-year goal to achieve a score of 5.43 out of 7 on our stakeholder assessment survey regarding risk

SDG Focus Area(s):

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Recognizing it will take alignment of all our organizations to scale impact globally, we invite you to join the movement as a Steward of Inclusive Capitalism. Together, the collective action of Council members will contribute to a fairer, more inclusive and sustainable future for all people and our planet.