Environmental, Social, and Governance Considerations

As an investor with a well-diversified portfolio that is broadly representative of the real economy, the Seattle City Employees’ Retirement System (SCERS) benefits from an Environment that is sustainable, a Society that is well-functioning and Governance systems that are sound.

SCERS integrates environmental, social and governance (ESG) risks and opportunities into its investment process to ensure that any financially material impact on risk and return is considered. SCERS evaluates financially-material ESG factors in a manner consistent with other investment factors.

SCERS has specifically identified climate change and diversity, equity, and inclusion (DEI) as key areas of focus and pursues positive action strategies that are intended to have a beneficial impact on these critical issues. 

• Climate change positive action strategy: SCERS supports decarbonizing the real economy to safeguard its investment portfolio from the impact of climate change. This strategy includes company voting and engagement, policy advocacy and sustainability investments as actions to advance this goal.
• DEI positive action strategy: SCERS supports improving diversity, equity, and inclusion within investment managers and companies to foster robust decision-making and improved performance. This strategy includes company voting and engagement and manager research as actions to advance this goal.
   

SCERS's staff provides semi-annual updates on the positive action strategies and other ESG matters that are available from the dropdown below.

SCERS has also joined the following ESG-focused investor organizations to share information with other institutional investors and pursue ESG issues of mutual concern:

• Ceres Investor Network on Climate Risk and Sustainability
• Principles for Responsible Investment
• Council of Institutional Investors
• Climate Action 100+
• Institutional Limited Partners Association
• Investment Diversity Advisory Council

SCERS supports ESG goals such as combating climate change and advancing DEI in a way that is consistent with and additive to our mission to fulfill the promise made to our members by delivering the retirement benefits they have earned.  As required by state law, SCERS will not take investment actions that compromise our financial mission in the pursuit of an ESG goal.

Further information can be found in the SCERS ESG Policy and accompanying legal analysis.