A Major Step Forward at CalSTRS

A new report shows deep cuts to Big Oil investments at California teachers’ pension fund; activists celebrated the progress but called for more change.

CalSTRS, the California teachers’ pension fund, has significantly reduced its fossil fuel investments since 2022, according to a new report from the Institute for Energy Economics and Financial Analysis. 

Over the past four years, CalSTRS has moved over $30 billion–one-fifth of its public equity assets–into a low-carbon portfolio. This portfolio excludes the top five global oil and gas companies, like ExxonMobil and Chevron, and scales back investments in other fossil fuels. 

The weight of fossil fuels across CalSTRS’ public equity portfolio fell by one-third between 2022 and 2025, as the pension giant sold off between 25% and 60% of its shares in each of the top five fossil fuel companies. Overall, the fund shed about $750 million in Big Oil investments during these years. 

“CalSTRS set an example for other pensions by taking Big Oil out of 20% of its portfolio. Now it’s past time to do the same with the other 80% of investments, and past time for CalPERS to follow suit,” said Fossil Free Executive Director Quinn Eide.

A Decade of Divestment

Beginning in 2013, teachers, youth, and retirees urged CalSTRS to divest from fossil fuels–giving public comments at pension board meetings, holding dozens of protests, and organizing within their schools and unions. In 2022 and 2023, state legislation was introduced that would have required CalSTRS to phase out fossil fuel investments by 2030.

At the time, CalSTRS board members seemed unmoved by activists’ concerns. But after years of activism–and facing a real threat of divestment legislation–the board approved a strategy that drastically reduced their investments in top fossil fuel producers. 

Longtime divestment activists were glad to see tangible progress toward a fossil-free CalSTRS–but urged the fund to speed up its transition in light of the catastrophic pace of climate change. 

Deborah Silvey, a retired teacher and co-founder of FFCA, spoke to the CalSTRS board about divestment for the first time in 2013. “Why should my pension be supporting the demise of the climate for my grandchildren?” she remembers thinking at the time. In response to the new report, she said, “I would congratulate CalSTRS on having the courage to think outside the box, but this is a very small step to take at a time when we face both the risk of climate disruption and the consequent financial risk to our future pensions. It’s time to deepen their courage even more.”

Raven Fonseca Jensen, now a college senior, got involved in the campaign for CalSTRS divestment as a 16-year-old public school student. “It feels good to know that all those hot days in Sacramento and all those Zoom meetings did actually create this material change,” she said. “But it’s not enough, and it’s something that should have happened decades ago. To the CalSTRS board I would say: you just can’t be invested in fossil fuels. It’s literally destroying our means to survive on the planet.”

“The climate crisis is present–it didn’t get put on hold just because all our other political systems have fallen apart,” said Zara Ahsan, a college sophomore who also joined the divestment campaign as a teen. “It’s fortunate that the financial and moral interests align here. If that serves as incentive to continue divestment, so be it.”

Ramauri Cash-Hamilton, who got involved in the divestment campaign as a sixth grader, shared this reflection:

“It honestly feels like a really big victory. Not just for me, but for all the young people and adults who have poured years of energy into the CalSTRS divestment campaign. This was not something that happened overnight. Countless people showed up, organized, pushed, and stayed committed even when progress felt slow. I was lucky to be one of many who helped lead that work, and even that leadership was shared. Over the years, different people stepped up, rotated in and out of leading meetings, building strategy, and keeping the momentum alive.

That is what makes this moment so meaningful. It is not just a policy shift, it is proof that all that effort mattered. It is a win for teachers across California, it is a step away from harmful fossil fuel investments, and it is also something deeply personal. It shows that the time, energy, and care we all gave to this campaign actually made a difference.

As for my own role in this work, it means a lot to me. I have been involved with YVA since I was in sixth grade, since around 2018. That is nearly a decade of my life dedicated to this. When I look back, I feel proud. Proud of the work we did, proud of the growth, and proud of both the small wins and the big ones like this. None of it happened alone, so many people made this possible, and I am incredibly grateful to all of them.

Looking forward, I would say this to CalSTRS. This is a strong step, but it should not be the last one. It is important to continue moving away from industries that are harming communities and the environment, and instead invest in a future that actually supports the people you serve. Teachers dedicate their lives to uplifting the next generation, and the way their pensions are invested should reflect those same values.

There is an opportunity here to not just protect financial security, but to invest in a future that benefits both educators and their students. Continuing down that path, toward sustainable and forward looking investments, is how you truly honor the trust that teachers place in you.”