News release | Barbara Zumwalt

WEST SACRAMENTO, Calif. (February 26, 2024) – The California State Teachers’ Retirement System has released its 2022–23 Sustainability Report, an annual snapshot of organizational sustainability, which helps build a strong foundation for future success and ensures CalSTRS will be here for California's public educators when they are ready to retire.

In this edition, CalSTRS reported on key sustainability topics, including member retirement education; progress of the CalSTRS Funding Plan; privacy and information security; the path to net zero; sustainable operations; workforce management and employee wellness; and diversity, equity and inclusion.

"I am proud of our commitment to integrating sustainability into our strategic planning and our everyday practices and decision-making," CalSTRS Chief Executive Officer Cassandra Lichnock said. "By focusing on these principles, we are better able to serve our members: California's public educators."

Report highlights

Member retirement education

• California’s public educators live longer than average in the U.S. population, making it essential that they have enough savings to last through retirement. With that in mind, CalSTRS makes a point to engage with members from early in their careers onward to promote better retirement security.
• CalSTRS members who retired in fiscal year 2022–23 received, on average, 56% of their highest compensation. For CalSTRS members, this means supplemental savings are essential. To help members close this gap CalSTRS offers voluntary, low-cost Pension2® 403(b), 457(b), Roth 403(b) and 457(b) plans. CalSTRS continues to inform its members about these options through newsletters, member toolkits, webinars, videos, benefit planning sessions and online calculators.

CalSTRS Funding Plan progress

• Under current actuarial assumptions, CalSTRS is slightly ahead of schedule to reach full funding for the Defined Benefit Program by 2046.
• The funding plan reflects a shared commitment by CalSTRS members, employers and the State of California to fully fund the Defined Benefit Program to ensure long-term sustainability of the Teachers’ Retirement Fund.

Path to net zero

The commitment to achieve net zero greenhouse gas emissions in the CalSTRS Investment Portfolio by 2050 or sooner builds on nearly two decades of influencing global sustainable business practices and public policies. At CalSTRS, net zero means that the amount of greenhouse gases emitted by companies in the CalSTRS Investment Portfolio is offset by the amount taken away.

Net zero highlights from the 2022–23 fiscal year include:

• Reallocation of capital within the Global Equity Portfolio to reduce greenhouse gas emissions by approximately 14%.
• Approval of a plan that aims to reduce emissions in the corporate credit portion of the Fixed Income Portfolio by 12% while preserving expected returns.
• Deployment of more than $1.3 billion into a dedicated low-carbon solutions private assets portfolio managed by the Sustainable Investment and Stewardship Strategies unit.

Diversity, equity and inclusion

CalSTRS participates in diversity and inclusion efforts internally and across the investment management industry.

• Internally, CalSTRS strives to increase inclusion and foster a workplace where all staff are treated with respect. Efforts include robust and thoughtful succession planning, providing resources and offering staff development for employees to thrive. These efforts, along with the strong internal culture where CalSTRS strives for diversity, equity and inclusion, will position CalSTRS to attract and retain top talent.
• The Investments team promotes diversity on the corporate boards of companies in which it invests. The team engages the investment industry on key DEI topics through forums and workshops and invests in emerging and diverse managers aligned with the risk and return objectives of the CalSTRS Investment Portfolio.

The Sustainability Report follows the Global Reporting Initiative Standards, recognized as a global best practice for increasing organizational transparency.

Media contact

Barbara Zumwalt
Phone: 916-414-1440
M-F, 8 a.m. - 5 p.m. PDT
Newsroom@CalSTRS.com

About CalSTRS

CalSTRS provides a secure retirement to more than 1 million members and beneficiaries whose CalSTRS-covered service is not eligible for Social Security participation. On average, members who retired in 2022–23 had 25 years of service and a monthly benefit of $5,141. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with $325.9 billion in assets under management as of January 31, 2024. CalSTRS demonstrates its strong commitment to long-term corporate sustainability principles in its annual Sustainability Report.