CalPERS 'Green' Initiative Producing Results

SAN FRANCISCO-The California Public Employees’ Retirement System said Monday it has made progress toward its environmental goals for its real estate holdings. While it’s too early to know if the company’s ‘green’ initiative will positively affect investment returns, the nation’s largest public pension fund said energy use by its real estate partners has gone down, including a 13.3% reduction in 2007.

The data was part of a report to CalPERS’ investment committee that summarized all of the pension fund’s environmental initiatives, which cover not only real estate but also private equity, public companies and inflation-linked asset groups. “This assessment shows initial signs of real progress,” said George Diehr, Chair of the Investment Committee.

Compared with 2006, the CalPERS Energy Efficiency Plan showed the reduction in electricity and natural gas based on its core investment partners’ response to a survey. CalPERS’ environmental plan was set up in 2005 and is designed to reduce energy use by 20% by 2009, while also achieving risk-adjusted returns.