CalSTRS CIO, Chris Ailman, on His Visionary ESG Strategy for the World’s Largest Educator-Only Pension Fund (#034)

SRI360 | Socially Responsible Investing, ESG, Impact Investing, Sustainable Investing

Does your pension fund contribute to a more sustainable world? CalSTRS does and has been since the 1970s/80s.
To lead this conversation is the very first pension fund guest for SRI 360°, Chris Ailman, one of the world’s most recognized and respected Chief Investment Officers.
Multiple award winner, Chris currently acts as CIO of CalSTRS, managing its $311.5 billion portfolio, making it the second-largest pension fund in the United States and the largest educational pension fund in the world.
With over 39 years of expertise in institutional investment, Chris has become a thought leader in incorporating ESG criteria into his long-term, “patient” capital investing approach.
His journey began with an early fascination with the stock market, leading him from the role of registered rep at Dean Witter to becoming a certified financial planner from USC. His interest in institutional investment carried him through pivotal roles, from Sacramento's county retirement system to the Washington State Investment Board, before landing at CalSTRS in 2000.
Chris has not only placed CalSTRS as a beacon of sustainable investing but has also been recognized globally for his innovative investment approach. He’s also the mind behind the Sustainability Accounting Standards Board, the chair of the 300 Club, and co-chair of the Milken Global Capital Markets Committee.
In this episode, Chris and I reflect on the evolution of ESG investing and its critical role in shaping our planet’s future. His narrative is not just about investment; it's a testament to his belief in the power of long-term investing and the need for a sustainable approach to wealth management.
We also explore the challenges of integrating ESG into traditional investment frameworks, the importance of shareholder engagement and corporate governance, and the future of sustainable investing.
Tune in to this conversation to gain valuable insights from one of the world’s most influential figures in pension fund management and sustainable investing.
Show notes: https://sri360.com/podcast/chris-ailman/
About the SRI 360° Podcast: The SRI 360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, I interview a world-class investor who is an accomplished practitioner from all asset classes.
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Key Takeaways
An overview of the CalSTRS portfolio (17:14)
Chris’ theory of change on long-term capital investing (24:09)
The ins and outs of ESG investing strategy (25:40)
Sustainable investing, shareholder engagement, and corporate governance (40:26)
The CalSTRS net-zero emissions pledge (49:13)
Chris’ thoughts on nuclear power (55:00)
Differences between how Europe & USA view ESG (59:26)
Sectors making progress towards global sustainability (01:06:01)
Sustainability initiatives that Chris is involved in (01:12:13)
Final questions for Chris (01:15:42)
Additional Resources
Connect with Chris Ailman on LinkedIn
CalSTRS Website
CalSTRS Sustainable Investing
CalSTRS Path to Net Zero
CalSTRS LinkedI