"CalSTRS changes guidelines to promote climate expertise on corporate boards", 18 Jul 2016

The California State Teachers’ Retirement System (CalSTRS) will start targeting the appointment of board members with specific expertise and experience in climate change risk management strategies at investee companies, as the fund makes changes to its corporate governance principles to reflect the growing risk of climate change...CalPERS already amended its corporate governance code in April, as well as calling on companies to assign oversight responsibility on climate change to a board member or full board...Yee, who sits on the CalSTRS and CalPERS boards as well as serving as California’s chief fiscal officer, said: “Climate change risks will have a material impact on our pension funds’ returns if not well-managed and addressed. Due to CalSTRS’ continued focus on global greenhouse gas emission reduction, today’s vote ensures that corporate boards have the expertise and competence to adequately understand and address the challenges and risks imposed by climate change.”...Other changes to CalSTRS’ corporate governance principles include a new guideline to vote against directors if they do not act to remedy a lack of board diversity...[Subscription only; free trial available]