X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-The California Public Employees’ Retirement System said Monday it has made progress toward its environmental goals for its real estate holdings. While it’s too early to know if the company’s ‘green’ initiative will positively affect investment returns, the nation’s largest public pension fund said energy use by its real estate partners has gone down, including a 13.3% reduction in 2007.

The data was part of a report to CalPERS’ investment committee that summarized all of the pension fund’s environmental initiatives, which cover not only real estate but also private equity, public companies and inflation-linked asset groups. “This assessment shows initial signs of real progress,” said George Diehr, Chair of the Investment Committee.

Compared with 2006, the CalPERS Energy Efficiency Plan showed the reduction in electricity and natural gas based on its core investment partners’ response to a survey. CalPERS’ environmental plan 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 as the installation of low-flow or sensor-operated fixtures, recycling programs, and mitigating and treating storm water runoff. One partner, the Hines Green Development fund, created in 2006 with CalPERS’ $225-million equity commitment, now has about $725 million in gross assets for development projects that involve high performance sustainable office buildings.

CalPERS is the nation’s largest public pension fund with more than $175 billion in market assets. As of September 30, 2008, five CalPERS Global Equity Partners had $419.7 million under management for environmentally screened public equity funds. CalPERS says it plans to expand the program for investments with managers who target public companies that are adapting to or mitigating climate change and other environmental risks.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.