The California Public Employees’ Retirement System (CalPERS) has joined an investor group of existing and potential green bond buyers calling on the green bond market to adhere to a set of principles that provide greater clarity on eligibility, disclosure, transparency, and impact reporting for green bonds.
The investor group, convened by the Ceres Investor Network on Climate Risk, has released a Statement of Investor Expectations for the green bond market that articulates investor guidance for green bond issuers.
The statement addresses four key issues of concern to green bond buyers:
Eligibility and consistency with standards Initial disclosure of intended use of proceeds Reporting on actual use of proceeds and project benefits Third-party assurance of project eligibility and benefits The statement is signed by 25 investors, including CalPERS, CalSTRS, the New York State Comptroller, the Connecticut Retirement Plans & Pension Funds, and PAX World Management, as well as BlackRock, Zurich Insurance, and a number of international asset managers and insurers.
The goal of the statement is to build on the Green Bond Principles and promote integrity of green bond issues and greater transparency by issuers, to support the credible growth of this important market.
CalPERS recognizes climate change as a material risk to society, the economy, and the impacts on investment decisions. Investors must consider risk factors like climate change and natural resource availability that could have a material impact on portfolio returns.
Read CalPERS Beliefs.
