CalPERS to hire Trucost
Neil McIndoe
We put an awful lot of effort into our proposal to be included in CalPERS pool of research organisations. So we were absolutely delighted when the $200bn pension fund announced we were one of only 2 UK based firms that made the grade.
Why are CalPERS interested in Trucost?
Because our data enables pension funds to measure the environmental risk of their portfolios in a quantitative way, and take action to substantially reduce that risk and yet still maintain expected financial returns. Our S&P Carbon Efficient Index gives you the returns of the S&P500 but with half the carbon.
At a time when Senior American political figures are promising to introduce a "cap and trade" energy bill and when there are plans in Congress to submit a law, called 3P, to make polluters pay for the three pollutants of sulphur dioxide, nitrous oxides, and mercury - it makes good fiduciary sense to understand how these costs will effect investments and position portfolios accordingly.
The investment rational in a nutshell - "a free call option on carbon costs going up".
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