CalPERS’ Climate Solutions Investments Surge to $71 Billion

Pension Giant Also Releases Approach for Responsibly Investing in Artificial Intelligence

November 9, 2026

Communications & Stakeholder Relations
Office of Public Affairs
(916) 795-3991 - [email protected]

SACRAMENTO, Calif. - CalPERS announced Monday that its investments in climate solutions had grown to reach $71 billion as of June 30, 2026. The new figure represents an increase of $11 billion since last year, and $24 billion since the strategy initially launched in November of 2023.

"The strong and steady growth means CalPERS remains on track to meet our goal of capitalizing on the transition to a low-carbon economy by investing $100 billion by 2030 in climate solutions as part of our Climate Action Plan," said CalPERS Chief Executive Officer Marcie Frost. "CalPERS remains committed to finding opportunities in climate solutions to help power future generations and provide the pension benefits that our members have earned."

The Climate Action Plan outlines a global strategy to generate strong performance on behalf of CalPERS members by investing in opportunities created by the ongoing shift to a low-carbon economy.

"Money from around the world continues to pour into the climate market, with $2.3 trillion invested in energy transition and clean technology projects in 2025," said CalPERS Chief Investment Officer Stephen Gilmore. "Renewable energy is cleaner, cheaper and faster to bring to market than conventional power sources, and CalPERS is providing the capital necessary to meet those needs."

Investments include those that support increased electricity generation, improved power grid efficiency, and utilities seeking to transition from fossil fuel-based energy sources to renewable ones. CalPERS also invests in climate solutions that reduce the threat that pollution and rising global temperatures pose to the overall health of the pension fund. The increase to $71 billion is a result of new investments and the appreciation of existing investments.

"Investing in climate solutions is increasingly important because global temperatures continue to rise around us, which can impact the financial performance of the portfolio." said CalPERS Managing Investment Director of Sustainable Investing Peter Cashion. "Since the physical climate risk is likely to grow across our portfolio, our targets include investments that make assets, communities, and supply chains more resilient to a changing world."

Responsible AI Approach

CalPERS also announced it will present its Responsible Artificial Intelligence (AI) approach at its upcoming board meeting on November 16. The framework looks at AI through the lens of risk management, as well as value creation and preservation.

"This is one of our top priorities, and CalPERS is working with its partners on how AI projects use energy and water, as well as the impact they have on a community," Frost said. "The AI buildout has moved so quickly, and a key part going forward is to ensure that these investments are done in a sustainable way."

In April, CalPERS updated its proxy voting guidelines to include that directors could be held accountable for failing to oversee AI risk. The issue of AI was also a topic of discussion in more than 100 company engagements during the 2026 proxy season. On the private side, CalPERS is beginning to incorporate Responsible AI in its diligence program and is also actively taking part in industry efforts to promote consistent expectations on AI oversight and disclosure.

"Effective AI policies and governance processes are important for the performance, stability, and resiliency of the market and the long-term performance of our portfolio," Gilmore said. "We will engage policy makers and support policies that promote transparency in AI application and decision-making."

About CalPERS

CalPERS is the largest defined-benefit public pension in the U.S., with 2.4 million members. Since 1932, CalPERS has provided retirement security for state, school, and public agency employees who invest their life's work in public service. In 1962, CalPERS expanded its services to include health benefits and now offers quality health plan coverage for more than 1.5 million members and their families. For more information, visit www.calpers.ca.gov.