For more than a year, the Teachers' Retirement Board Investment Committee has studied best practices in incorporating diversity, equity and inclusion into both the CalSTRS workplace and its investment portfolio.

Research suggests that a more diverse team leads to greater innovation, better decision making and enhanced results. This improves the likelihood that CalSTRS will achieve its goal of being a sustainable organization, which supports its mission to provide a secure retirement for California's public educators.

At the May meeting, staff outlined three long-term strategic goals to enhance the Diversity in the Management of Investments (DIMI) work plan.

• Overall DIMI strategy: Enhanced data collection and measurement that will lead to improved strategy development and decision-making. Through data collection, CalSTRS can better understand and assess real and long-term behavioral and organizational shifts for the Investment Branch and its investment partners.
• Internal staff: Development of internal programs promoting growth opportunities designed to improve sourcing, hiring and retention of staff. This goal looks not only at external characteristics but inward ones, such as experience, background, skills, gender, race, culture and all the ways people can differ from one another. This is critical and can drive innovation and prudent decision-making.
• External engagement and portfolio management: Enhancements in DEI assessment as part of the CalSTRS Investment Branch’s initial due diligence and the development of a universal external manager engagement framework. Engagement will cultivate better relationships between CalSTRS and the investment managers and improve the financial market landscape for long-term investors.

CalSTRS will pursue these three goals over the next two to three fiscal years beginning July 1, 2024.