Engagements in action
CalSTRS invests a multi-billion dollar fund in a unique and complex social-economic milieu and recognizes we can neither operate nor invest in a vacuum. As a significant investor with a long-term investment horizon, engagement is a critical tool used by the CalSTRS Sustainable Investment and Stewardship Strategies team to influence changes in public policies and corporate practices that support long-term value creation.
We engage, through meetings, letters, shareholder proposals, investor coalitions and proxy voting, to influence companies to adopt best practices in managing environmental, social and governance issues to create sustainable businesses. We also engage policymakers to codify strong governance practices that improve the financial market landscape for long-term investors and their beneficiaries. Our history of engagement activities has resulted in better relationships and outcomes across global industries.
CalSTRS engagements for the first quarter, 2026
Our current and ongoing engagements to influence changes in public policies and corporate practices that support long-term value creation.
Engagement spotlight
The ability to file a shareholder proposal, which are resolutions submitted by investors for a vote at a company’s annual general meeting, is a fundamental shareholder right, ensuring investors have a say in the companies they own. In November 2025, the Securities and Exchange Commission announced it would pause the review of no-action requests, which are submitted by companies seeking to exclude a shareholder proposal from a vote at the AGM.
While there may be valid legal reasons why a company can exclude a shareholder proposal from a vote, the SEC has historically played an important role as a neutral referee in making judgements on no-action requests. The SEC decides whether a shareholder proposal can be excluded, and both companies and proponents of those proposals have respected the SEC’s determinations. Often, before the SEC gets involved, companies and proponents can reach a resolution. Examples of such resolutions include the company agreeing to put a proposal on the ballot, or the proponent withdrawing the proposal after the company takes action to address the issues raised.
The SEC’s announcement represents a concerning shift in the no-action request process. The change paves the way for companies to exclude shareholder proposals more easily and leaves proponents with little recourse. In early 2026, several proponents already have sued major companies, including AT&T, PepsiCo, Chubb and UnitedHealth Group, over attempts to exclude proposals from their respective ballots. Litigation, which is normally reserved as a last resort, is becoming the only option for investors. While large institutional investors may have the resources to file lawsuits, many smaller investors and individuals do not.
CalSTRS is closely monitoring how the shift in SEC policy will play out this proxy season. CalSTRS is watching for potential abuse of the new policy, assessing each shareholder proposal exclusion, engaging with companies and potentially adjusting proxy voting decisions. Shareholder rights are fundamental to well-functioning financial markets, and CalSTRS will continue to engage with companies and policymakers to ensure they are protected.