California's two biggest pension funds, CalPERS and CalSTRS, are under pressure from advocacy groups to divest from companies tied to the Trump administration, fossil fuels, and private equity firms with poor labor records. The funds, with $1 trillion in assets, face campaigns targeting Tesla, Palantir, and others.
Critics cite reputational and climate risks, while fund leaders oppose broad divestment due to fiduciary duties. A recent Tesla risk assessment led to no changes.
The debate reflects tensions between political values and financial obligations. - CalPERS and CalSTRS hold $1 trillion in combined assets.
- Groups push divestment from Tesla, Palantir, fossil fuel companies, and private equity. - Funds previously divested from firearms and tobacco but resist broad divestment.
- Tesla remains a top performer; no divestment after risk assessment. The political battle highlights the challenge of aligning investments with values while ensuring pension solvency.