“I’ve spent a lot of time on this energy transition, and I profoundly believe this is the most dominant theme for the next 10 to 15 years in investment management. ”
— Chris Ailman
Does your pension fund contribute to a more sustainable world? CalSTRS does and has been since the 1970’s/80’s.
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. Chris’ boundless expertise, particularly from a pension fund POV, offers a unique perspective on the intersection of finance, sustainability, and innovation.
Ready to make your investments work not just for you, but for the planet too?
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.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform. You can watch the interview on YouTube here.
What was your favorite quote or lesson from this episode? Please let me know in the comments.
SCROLL BELOW FOR LINKS AND SHOW NOTES…
SELECTED LINKS FROM THIS EPISODE:
- Connect with Chris Ailman: LinkedIn
- CalSTRS
- CalSTRS Path to Net Zero
- CalSTRS Sustainable Investing
- The Sustainability Accounting Standards Board
SHOW NOTES:
[00:00] Episode introduction
[07:07] Chris’ upbringing in California & beginnings in investing
[27:06] An overview of the CalSTRS portfolio
[36:39] Chris’ theory of change on long-term capital investing
[38:50] The ins and outs of ESG investing strategy
[01:04:23] The CalSTRS net-zero emissions pledge
[01:10:27] Chris’ thoughts on nuclear power
[01:16:00] Differences between how Europe & USA view ESG
[01:23:22] Sectors making progress towards global sustainability
[01:30:02] Sustainability initiatives that Chris is involved in
[01:33:43] Rapid fire questions
MORE CHRIS AILMAN QUOTES FROM THE INTERVIEW:
“We need to see the world change, and we need governments to change. We’re very aggressive in the hard-to-abate industries, and we’re funding climate mitigation and climate solutions.”
— Chris Ailman
“We have to recognize we’re human beings who live in a short-term world, but we really need to think long-term if we want to survive literally as a species.”
— Chris Ailman
