By Michael Katz
The pension giants would have to sell off more than $9 billion combined in assets by 2027.
California lawmakers have introduced a bill that would require the California Public Employees’ Retirement System and the California State Teachers’ Retirement System to divest all their fossil fuel assets, which are worth more than $9 billion combined, within five years.
Senate Bill 1173, introduced by Sen. Lena Gonzalez, D-Long Beach, and co-sponsored by Sen. Scott Wiener, D-San Francisco, would prohibit the $474.6 billion CalPERS and the $308.6 billion CalSTRS from making new investments or renewing existing investments in fossil fuel companies. The bill defines a fossil fuel company as one of the 200 largest publicly traded fossil fuel companies as established by carbon content in the companies’ proven oil, gas and coal reserves.