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California retirement system CIO argues against divesting from fossil fuel companies (2024)
| Environmental, social, and corporate governance |
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Christopher Ailman, the CIO of the California State Teachers Retirement System (CalSTRS)—the second-largest public pension system in the country—argued last week against ESG strategies that involve divesting from fossil fuel companies. Ailman argued divestment allows energy companies to continue polluting without interference and that a better strategy is to hold energy stocks to engage with company leadership:
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The investment chief of Calstrs, one of the world’s largest pension funds, has said the tactic of dumping companies not acting on climate change is a 'failure' and does not alter corporate behaviour. Christopher Ailman, CIO of the $327bn Calstrs retirement fund, the second-largest public pension plan in the US, insists that engagement — or trying to influence companies to change their practices by remaining invested — is a better way to achieve outcomes for the environment. … 'I feel very strongly about this issue,' Ailman told me in an interview. 'Divestment is an investment decision. As a solution to a social problem it is an absolute 100 per cent failure.'[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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