How do you balance returns against ESG criteria? In other words, are there different thresholds for an investment’s success depending on its environmental sustainability rating?

Our mission is focused on “securing, protecting and prudently investing the pension Trust assets, administering mandated benefit programs, and providing promised benefits”. All our ESG initiatives mu… Show more

How do LPs think about impact investing in conjunction with ESG criteria?

SFERS does not have a carveout to target “ESG”, “sustainable”, or “impact investing” strategies. However, we are more than open to investing in impact strategies where they otherwise meet our risk/re… Show more

How is your organization getting involved in socially responsible and impact investment?

We’re still focused on trying to be leaders in socially responsible and impact investing. It's hard to do. We don't want to sacrifice returns, yet we want to have measurable impact&mdas… Show more

How does your institution use ESG principles to determine how to reinvest assets divested from fossil fuels?

We began restricting investment from thermal coal in 2017 and certain oil & gas companies following that beginning in 2018. For most of these companies, however, we were divesting a relatively minima… Show more

How does your institution engage in shareholder activism and proxy voting once it identifies a priority for change within an organization?

Our proxy voting priorities are guided by our Proxy Voting Guidelines, which we revisit each year to ensure we are casting our votes in alignment with our evolving expectations of good corporate gove… Show more

How can investors navigate the tension between the public pressure to devalue polluting assets by divesting, and the opportunity to create change from within by retaining a seat at the table?

This is a great question and one that I alluded to earlier in how we’ve approached our fossil fuel investments. We believe that there are certain ESG risks that are uncompensated, which is why our bo… Show more

Private equity firms are making fewer new investments in fossil fuels and are pivoting toward renewables. From a purely market standpoint, just how risky are fossil fuel investments going forward?

Among the other trends that Covid-19 may have accelerated is the move away from fossil fuels. It remains to be seen if and how demand rebounds over the next few years, but there are more and more cal… Show more

What criteria, aside from total carbon footprint, do you use to determine whether or not an asset is sustainable or unsustainable?

Fundamentally we believe that the world – from a regulatory and technological perspective – is moving towards one that is lower carbon and eventually net-zero carbon. So, for us, an asset is sustaina… Show more

How do you measure the carbon footprint of your assets?

In March of last year, SFERS was one of the first US investors to announce our ambition to be a net zero greenhouse gas emissions asset owner by 2050. This reflects an ambition to invest in alignment… Show more