CalSTRS staff presented an annual update on the Stewardship Priorities to the board’s Investment Committee. The presentation included highlights from calendar year 2024 and new opportunities for calendar year 2025.

Stewardship priorities guide CalSTRS when engaging with companies on long-term business risks and are designed to safeguard CalSTRS’ ability to pay member benefits.

These priorities key in on tangible risks to the CalSTRS Investment Portfolio and identifying and mitigating business risk is a sound practice for CalSTRS and fellow long-term institutional investors.

The three-year Stewardship Priorities include three key areas:

• Corporate and market accountability
• Net zero transition
• Workforce and communities

CalSTRS also identified specific engagement opportunities for the coming year:

• Artificial intelligence (opportunities in all three stewardship priority areas)
• Biodiversity and nature (opportunities in net zero transition and communities)
• Protecting robust diversity, equity, and inclusion programs and workforce composition disclosures

For more information on ongoing stewardship highlights, please go to CalSTRS Engagements in Action newsletter webpage. The page is updated every quarter.