CalPERS Names Peter Cashion New Head of Sustainability Program
Cashion’s role will be to set the vision, strategy, and governance for CalPERS’ sustainability work and be responsible for leading all aspects of the fund’s efforts to develop and implement an economics-based ESG research and data framework to support environmental, social, and governance (ESG) integration into the investment decision-making process.
“CalPERS has been a pioneer in its advocacy of climate solutions and sustainable investing, and our focus on that work has only intensified over the years,” said CalPERS Chief Investment Officer (CIO) Nicole Musicco. “That makes this a critical position to us. Peter’s long record of impact investing across global markets elevated him in our search and makes him a great fit with the fund’s mission. His experience as a hands-on investor in multiple asset classes, standing up complex sustainable investing strategies and leading diverse global teams, makes him the right person to take the reins of CalPERS’ sustainability efforts.”
ESG: Get to Know the Basics
Take a closer look at what else is included under the ESG label.
Let’s start by focusing on the “E” in ESG, as environmental matters get a lot of attention.
Some examples of environmental reporting factors are climate policies, water use, waste, carbon emissions footprint, and natural resource conservation. All these practices could impact a company’s bottom line, and therefore, CalPERS’ investment earnings.
For instance, governments around the globe have committed to reducing greenhouse gas emissions. Consider if a company’s primary operations produce a significant amount of greenhouse gases. It’s likely they’ll face a drop in revenue or even challenges in meeting their energy demands without switching at least some of their focus to renewable energy.
Let’s define the “S” in ESG: social.
Social is a broad category, but it really comes down to people. Examples of social reporting include information about wage equality, workplace safety and health, human rights, customer satisfaction, and even data protection and privacy.
It’s simple. Negative experiences for employees reduce productivity and increase the chances for workplace litigation, which can impact a company’s bottom line. Data breaches can disrupt operations and hurt customer loyalty, which also can hurt profit potential.
Seems the whole world has gone mad. Hope I don’t loss my retirement.
Thanks for stopping by, God bless America and you.