The following roadmap presentation is intended to:
- Provide transparency and clarity regarding the SBI's approach to executing on its fiduciary duty regarding these important topics.
- Build on the work of the Meketa Investment Group's Climate Change Investment Analysis Report from 2022.
- Present the SBI Staff's approach for implementing the Board's 2020 resolution concerning environmental, social, and governance initiatives.
We recognize that this is a complex and evolving subject. As long-term investors, we will continually evaluate our approach and adapt as necessary.
On May 25, 2022, the MSBI adopted the Resolution on Climate Change Risk-Related Information Transparency which states the MSBI's support of the Securities and Exchange Commission (SEC) Proposed Rules for The Enhancement and Standardization of the Climate-Related Disclosure for Investors File No. S7-10-22.
MSBI Resolution on Climate Change Risk-Return Information Transparency
MSBI Comment to the SEC supporting Climate-Related Disclosures for Investors
More information on the SEC Proposed Rule for The Enhancement and Standardization of the Climate-Related Disclosure for Investors File No. S7-10-22 can be found by clicking on the following link.
In 2021, the SBI engaged Meketa to expand upon their 2019 report with a more in-depth Climate Change Investment Analysis. This project includes three reports which were published in 2022.
The "Phase I: Global Trends" report reviews high-level trends in financial markets and regulatory frameworks. The "Phase II: Public Pension Climate Leaders Survey" report focuses on what other asset owners are doing to manage climate change risks. The Phase III report focuses on the SBI's current portfolio positioning and options for implementing a successful climate transition strategy.
In 2019, the SBI engaged Meketa Investment Group (“Meketa”) to review the potential impact that climate change may have on the long-term investment risks to the SBI’s investment portfolio and indicate approaches that the SBI may take to address and mitigate identified investment risks.
In the report below, titled "SBI Climate Risk Investment Discussion - November 2019", Meketa discusses the potential impact of climate change on investments; highlight peer pension plan current approaches to climate risks and opportunities; review the SBI’s current approach to climate issues; and provide insights on how the SBI’s portfolio is currently exposed to the risks and opportunities of transition to a low carbon economy—specifically the Plan’s exposure to fossil fuel companies, including the coal subsector, and exposure to energy transition opportunities. Finally, Meketa offers recommendations for the SBI’s evolution in its approach to climate change issues.