California state outline

California Average CBR Summary

Avg. Company Rating

Average Risk Rating: Medium

Avg. Rating Criteria

Corporate Weaponization Risk Levels
Criteria Risk Level
Cancellations Medium Risk
Discriminatory Philanthropy Medium Risk
Employment Protection Medium Risk

Corporate Weaponization

Corporate Governance and Public Policy Risk Levels
Criteria Risk Level
Advocacy Bias Medium Risk
Funding Medium Risk
Political Actions Medium Risk

Corporate Governance and Public Policy

State Leadership

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State Pension Fund Summary

California has two main public pension systems: the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS).

  • The CalPERS board represents state, school, and public agency employees, as well as some judges and legislators, and consists of 13 members: 4 Ex Officio (State Controller, State Treasurer, State Department of Human Resources, State Personnel Board); 2 appointed by the Governor; 1 appointed jointly by the Senate Rules Committee and Speaker of the Assembly; 6 elected by public pensioners.
  • The CalSTRS board represents public school teachers and consists of 12 members: 3 member-elected positions representing current educators; 1 retired CalSTRS member appointed by the Governor and confirmed by the Senate; 3 public representatives appointed by the Governor and confirmed by the Senate; 1 school board representative appointed by the Governor and confirmed by the Senate, 4 Ex Officio board members (Director of Finance, State Controller, State Superintendent of Public Instruction, State Treasurer).

CalPERS and CalSTRS use Glass Lewis for their proxy advisory services.

The “By Asset Manager” and “Asset Manager Voting” tables show the proxy voting records of the state’s asset managers who manage the pensions’ stock market portfolio through index, exchange-traded, or mutual funds. Since these are externally managed funds, the asset managers typically retain and exercise proxy voting privileges. This data is used to calculate the state’s pro-ESG and anti-ESG scores to see how the state leverages its externally managed funds in proxy voting.

The “State Voting” table shows the state’s proxy voting records for directly owned securities through pension fund portfolios. The 1792 Exchange commends California for publicly disclosing this information online for its pensioners.

Both tables are important to show a comprehensive picture of the state’s proxy voting record.

Pension Funds Management

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