How the largest US pension fund uses its financial power to influence corporate ESG performance

04/08/22 • 29 min

1 Listener

In 2022, the ESG Insider podcast is bringing you a series of interviews with some of the world’s largest asset managers, owners and financial institutions. In this episode, we hear from the largest pension fund in the U.S. — the California Public Employees' Retirement System, or CalPERS.

We speak to Simiso Nzima, managing investment director of global equity at CalPERS. The conversation focused on five vital sustainability topics — executive pay and its link to ESG performance; board diversity; climate risk; the lack of standardization in ESG metrics; the SEC’s new proposal on climate-related disclosures; and finally, the debate about divestment versus engagement.

To listen to our interview with BlackRock: https://podcasts.apple.com/us/podcast/behind-the-scenes-with-blackrock-how-the-worlds/id1475521006?i=1000554510594

To listen to our interview with State Street Global Advisors: https://podcasts.apple.com/us/podcast/state-street-global-advisors-exec-on-climate-accountability/id1475521006?i=1000551552556

We'd love to hear from you. To give us feedback on this episode or share ideas for future episodes, please contact hosts Lindsey Hall ([email protected]) and Esther Whieldon ([email protected]).

Photo credit: Getty Images

To listen to our interview with BlackRock: https://podcasts.apple.com/us/podcast/behind-the-scenes-with-blackrock-how-the-worlds/id1475521006?i=1000554510594

To listen to our interview with State Street Global Advisors: https://podcasts.apple.com/us/podcast/state-street-global-advisors-exec-on-climate-accountability/id1475521006?i=1000551552556

We'd love to hear from you. To give us feedback on this episode or share ideas for future episodes, please contact hosts Lindsey Hall ([email protected]) and Esther Whieldon ([email protected]).

Photo credit: Getty Images

Previous Episode

Unpacking implications of the SEC's proposed climate disclosure rule

The U.S. Securities and Exchange Commission recently unveiled a long-anticipated climate disclosure rulemaking proposal. The proposed rule, which is now open for comment, would require companies to disclose certain climate-related information ranging from greenhouse gas emissions to expected climate risks to transition plans.

In this episode of ESG Insider, we explore the potentially wide-reaching implications for investors, companies and for climate disclosure globally.

To help us understand the SEC's proposal as it relates to audit and attestation requirements, we talk with Maura Hodge, who is IMPACT and ESG Audit Leader at professional services firm KPMG. We also learn about the challenges of measuring Scope 3 indirect emissions from our colleague Dr. James Salo, who heads environmental research & ESG modeling at S&P Global Sustainable1.

And to explore legal implications surrounding the proposal, we talk with Mellissa Duru, special counsel at law firm Covington & Burling and co-vice chair of the firm's ESG practice. Mellissa previously worked at the SEC in its Corporate Finance Division and as a lead adviser to former Commissioner Kara Stein on the SEC's ESG-related regulatory policy.

We'd love to hear from you. To give us feedback on this episode or share ideas for future episodes, please contact hosts Lindsey Hall ([email protected]) and Esther Whieldon ([email protected]).

Photo credit: S&P Global Sustainable1

Next Episode

Why Bank of America says Scope 3 emissions "biggest challenge" for banks

The world is working to meet ambitious environmental, social and governance targets in the form of the Paris Agreement and the U.N.'s Sustainable Development Goals. It's clear that banks will play a central role in financing the changes needed to meet these goals. In this episode of the ESG Insider podcast, we talk with Karen Fang, Global Head of Sustainable Finance at Bank of America, about how one of the largest U.S. banks is approaching sustainability challenges.

In the episode, Karen discusses the bank's goal of deploying and mobilizing $1.5 trillion in sustainable finance by 2030, how Bank of America is working to align SDG and ESG goals, and steps the bank is taking to meet its own net zero goal.

She also talks about the new climate disclosure proposal from the U.S. Securities and Exchange Commission and the difficulty of measuring and managing Scope 3 emissions.

"For us, as a bank, the biggest challenge is Scope 3 because that's our entire supply chain and value chain," Karen says. "It really takes all of our clients that we lend money to and invest in to work with us on a credible transition plan to transition to net zero so our financing and investment emissions — which is the biggest contributor of our Scope 3 emissions — can be neutralized over time."

Listen to our recent episode on the SEC’s climate disclosure proposal here: https://www.spglobal.com/esg/podcasts/unpacking-implications-of-the-sec-s-proposed-climate-disclosure-rule

Register for the S&P Global Sustainable1 Summit here: https://www.spglobal.com/esg/sp-global-sustainable1-summit?utm_medium=social&utm_source=podcast&utm_content=ESGInsiderAd

We'd love to hear from you. To give us feedback on this episode or share ideas for future episodes, please contact hosts Lindsey Hall ([email protected]) and Esther Whieldon ([email protected]).

Photo credit: Bank of America