People, Pensions, and the Planet
Understanding the connections between retirement savings and saving the planet.
Many of us are concerned about the climate crisis. It’s hard to figure out what we can do that might change the course and make a real difference.
One big lever of change has to do with the financial system.
Companies that produce the greatest emissions and refuse to change their business to adapt to climate reality are all funded by the financial system - investors, banks, private equity, venture capitalists, etc.
Your pension is possibly your greatest contribution to the financial system. Understanding how the financial system contributes to the climate crisis and demanding it is part of the solution is one of the single most impactful things you can do, both for the planet and for yourself.
That being said, your pension is your key to a secure retirement and not to be mucked about with lightly. We’ve created some resources to help you understand how your pension funds are used to fuel the climate crisis and what you can do to be a part of the solution.
What’s the link between investments and climate change?
Pension funds should invest for a secure future for their members. A future on a viable planet, inhabited by a flourishing society. Today this is not the case. We created a quick video to show the connection between our retirement savings and the climate crisis.
How is climate risk financial risk?
Climate change is a huge risk to the financial performance of the companies you’re invested in through your pension account. It’s no longer just a question of protecting the environment but also protecting the money you’re counting on in your golden years. Here’s a quick look at why climate risk is also financial risk.
How can your pension ensure climate action?
You may not know it but you, through your pension fund, have a powerful voice in corporate boardrooms. Public pensions are some of the largest asset owners in the world. With every dollar invested, the fund owns a share of a company. Pensions have millions of shares in some of the largest companies (and largest polluters). Here’s a quick video on how shareholder power works.
The first step in pensions using their shareholder power is to ensure they have strong policies around climate. You can find resources on our website that help you understand your pensions policies.
Our homepage features a map with links to pension policies in the highlighted states. We also do a comparison of how key states vote on directors at high-emitting companies. Below the chart, you’ll find a list of pension policies that empower pension boards to engage on climate. We plan to continue to add resources you can use. Please check back or subscribe to our newsletter below.
“If more investors hold boards accountable, we will see change. We just need more investors to hold boards accountable.”
— Simiso Nzima, Investment Director and Head of Corporate Governance, CalPERS