Unlocking State Power: How Public Pension Funds Can Drive In-State Climate Investment
State pension funds hold enormous potential to secure retirements, strengthen local economies, create jobs, and drive climate solutions right at home. Yet many U.S. pension funds aren’t taking full advantage of these opportunities.
Our new white paper, “Unlocking State Power: Overcoming Barriers to In-State Climate Investment for Pension Funds,” tackles the critical question: Why aren’t pension funds investing in resilient infrastructure and modernization projects in their own states or regions, and what can be done about it?
The core finding is striking: the challenge isn’t a lack of opportunity; it’s a failure of operational systems and organizational will. Rigid asset classifications, governance gaps, and cultural inertia are all preventing funds from deploying capital toward financially viable projects that also benefit regional economies.
The paper argues for a fundamental shift: moving pension funds from passive allocators of capital to active drivers of clean energy and resilience finance. It offers actionable strategies, including:
Aligning internal policies with climate and resilience goals.
Building dedicated in-house capacity for climate-focused investment.
Using radical transparency and context-specific risk metrics, such as physical resilience indicators, to guide capital deployment.
As the white paper highlights, technology now enables sophisticated scenario analysis, allowing funds to balance fiduciary duty with proactive, climate-risk aware investments. Inaction could create systemic risk that threatens the fund’s ability to fulfill its mission.
Through detailed analysis, case studies, and insights from leading research, this paper equips trustees, fund staff, and stakeholders with the tools and strategies to overcome institutional barriers and unlock tangible financial, social, and environmental-resilience returns.
State pension funds manage retirement savings and shape the economic and environmental future of their states.
Unlocking in-state climate investment can protect workers’ retirement security, accelerate regional resilience, and catalyze the growth of clean energy and climate adaptation projects.
Download the full white paper today to explore the barriers, the solutions, and the actionable steps public pension funds can take to unlock in-state climate investment opportunities.
Explore the barriers.
Discover the solutions.
Drive impact.
