ESG-focused initiative has selected Chris Ailman as the seventh member of its advisory
2014) — The CIO of California Sate Teachers’ Retirement System (CalSTRS), Chris
Ailman, has been appointed to the association board of the Principles for
Responsible Investment Initiative (PRI).
six other board members—primarily asset owners from large funds such as PGGM and
California's public employee pension—will oversee and advise the United Nations-backed initiative on environmental,
social, and governance (ESG) issues.
operates under the six
principles that help investors reach long-term performance targets as well
as “align investors with broader objectives of society.”
an asset owner and investor with a global reach, has invested consistent with
ESG principles since 1978, making it a natural fit with the PRI ethos,” Ailman
said. “As an organization, we were an early signatory to the PRI and are
honored to have the opportunity to contribute to this instrumental oversight
body to help guide global investment practices toward greater sustainability
and thoughtful growth.”
The CIO of
the $177 billion fund will serve a three-year term, subject to annual
performance reviews, and attend three to four meetings yearly. He was also selected
to join the exclusive 300 Club last year.
appointment comes just a few weeks after six
Danish pensions decided to leave PRI.
Pension, PensionDanmark, PFA Pension, PKA, and Sampension cited governance
problems in dumping the ESG-focused investment body.
In a joint statement,
the Danish funds said, “the UN-backed PRI have an important role to play in
promoting responsible investment—including emphasizing the importance of good
governance in companies around the world. We have, nonetheless, over a
sustained period of time observed with concern that the governance of the PRI
organization does not live up to the basic standards we as investors would
expect of the companies in which we invest. Despite numerous attempts to
improve the conditions within PRI, we must, unfortunately, acknowledge that
these attempts have not been successful.”
Managing Director Fiona Reynolds responded in a statement that the organization
has plans to review its governance this year: “The PRI is deeply disappointed
that this has occurred. The council’s governance committee has already begun to
define the scope of this review, which will be led by a new council chair
expected to be appointed in early 2014.”
Pensions Dump UNPRI over Governance Concerns, Class of 2013 CalSTRS, Power 100 Chris Ailman