THE IMPORTANCE OF HUMAN AND NATURAL CAPITAL IN VALUE CREATION – CALPERS

Anne Simpson, Director, Board Governance & Strategy at CalPERS, describes the fund’s advanced ESG strategy in detail. CalPERS, the largest pension fund in the US, has three main pillars in its ESG approach: financial capital, human capital and natural capital. All three pillars help long term value creation for the pension fund. On “Human Capital Management” the fund engages companies around: workforce, health & safety benefits and diversity. On “Natural Capital” the fund created the Climate Action 100+ initiative which encourages transition to low GHG emission technologies. Anne explains the way pension funds and other institutional investors can have a positive impact on ESG-related issues.