Key Takeaways
- • San Diego City Employees' Retirement System (SDCERS) reported that 'nearly all' of its fund managers have made improvements across four ESG categories, according to Responsible Investor.
- • The findings come from SDCERS's review of its manager ESG practices, as reflected in the pension's ESG reporting and its evaluation framework for ESG strategies.
- • SDCERS, a $5bn defined benefit plan, has refocused its private equity program while maintaining a $150m commitment to infrastructure.
Summary
The San Diego City Employees' Retirement System has found that 'nearly all' of its fund managers have made improvements in four environmental, social and governance (ESG) categories, according to Responsible Investor. The report, which the pension fund has publicized as evidence of ESG 'strides' among its managers, indicates broad progress across its external manager roster rather than isolated gains at individual firms. The primary source available for this story is a brief summary, so the specific four categories and the measurement methodology are not detailed in the available material.
SDCERS evaluates ESG investment strategies by assessing whether the theory and evidence support the view that a strategy will increase Trust Fund returns or decrease Trust Fund risk, according to the pension's published approach to ESG. This framework provides context for how the fund judges manager-level ESG progress.
The fund is a defined benefit plan established by the City of San Diego in 1927 to administer retirement benefits for city employees. Separately, the $5bn system has refocused its private equity program while remaining committed to investing $150m in infrastructure. The system also reported a 14.2% investment return for fiscal year 2026, per a summary of its annual reporting.
SDCERS evaluates ESG investment strategies by assessing whether the theory and evidence support the view that a strategy will increase Trust Fund returns or decrease Trust Fund risk, according to the pension's published approach to ESG. This framework provides context for how the fund judges manager-level ESG progress.
The fund is a defined benefit plan established by the City of San Diego in 1927 to administer retirement benefits for city employees. Separately, the $5bn system has refocused its private equity program while remaining committed to investing $150m in infrastructure. The system also reported a 14.2% investment return for fiscal year 2026, per a summary of its annual reporting.
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