California pension finance faces new conflict over oil investments

A California bill to force the second-largest U.S. pension budget to sell an estimated $15 billion of oil and fuel assets has quietly failed for a third date, though the influential climate lawmaker behind the effort is calling for the legislation to be reintroduced with more. Sworn to. A powerful coalition of climate activists.

SHAPE Senator Lina Gonzalez, a Democrat from Los Angeles County, said she will reintroduce legislation at an upcoming date to require California Nation staff’s escape gadget and California SHAPE academics’ escape gadget to sell their stakes in oil and fuel companies. He postponed the bill for the time being after a committee of the lower house of the legislature wanted it considered.

“We think we’ll get an even broader coalition,” Gonzalez, the California Senate majority leader, said in an interview. “So it will be a more concerted effort, there will be a lot more voices.”

The proposal incensed sections among California’s Democratic majority by highlighting a call between climate-change priorities and views that divestment would threaten the monetary fitness of municipalities already burdened by pension-fund liabilities. Gonzalez’s climate bill stalled until its next date for passage in the Senate.

Under the proposal to date, CalPERS and CalSTRS would be required to halt new investments in oil and gas companies by an upcoming date and liquidate their current assets in the field by 2031. However, the Nation Office and Migration Committee was chaired by Assembly member Tina. Gonzalez noted that McInnor sought to extend the divestment deadline to 2045 among the alternative provisions.

Mackinnon’s place of business did not return a request for comment. In a comment, a CalPERS spokesperson pointed to $504 billion of investment efforts to fight carbon emissions, including a commitment to increase green investments by more than $50 billion by 2030.

With approximately $338 billion in investments, CalStras said efforts to limit investments would increase portfolio risk and ensure investors are able to value their stakes in energy companies to pursue changes that will impact their climate. Reduce related risks.

In keeping with the legislative research deadline, Gonzalez’s bill would require CalPERS and CalStras to sell an estimated $15 billion of assets. A report about this date said the aim could be “equivalent to a hyperbolic sale”, which would potentially force the pension to sell assets at a loss.