The data was part of a report to CalPERS' investment committeethat summarized all of the pension fund's environmentalinitiatives, which cover not only real estate but also privateequity, public companies and inflation-linked asset groups. "Thisassessment shows initial signs of real progress," said GeorgeDiehr, Chair of the Investment Committee.

Compared with 2006, the CalPERS Energy Efficiency Plan showedthe reduction in electricity and natural gas based on its coreinvestment partners' response to a survey. CalPERS' environmentalplan was set up in 2005 and is designed to reduce energy use by 20%by 2009, while also achieving risk-adjusted returns.

CalPERS says its partners adopted such conservation measures asthe installation of low-flow or sensor-operated fixtures, recyclingprograms, and mitigating and treating storm water runoff. Onepartner, the Hines Green Development fund, created in 2006 withCalPERS' $225-million equity commitment, now has about $725 millionin gross assets for development projects that involve highperformance sustainable office buildings.