California's two largest pension funds, CalPERS and CalSTRS, are under pressure from activist groups to divest from companies associated with the Trump administration and fossil fuels. the funds, which collectively manage $1 trillion in assets, are being targeted for their investments in firms like Tesla, Palantir, ExxonMobil, Chevron, and private equity firm Apollo Global Management.

The $1 Trillion Divestment Push

Activist groups are calling on CalPERS and CalSTRS to pull their investments from companies they deem politically unaligned. This includes firms with ties to the Trump administration, such as Palantir, and fossil fuel giants like ExxonMobil and Chevron.. According to the report, the campaigns also target private equity firms with poor labor records, such as Apollo Global Management.

Fossil Fuel Opposition and Political Ties

The divestment campaigns are part of a broader movement to align investments with political and environmental values. Protesters have specifically targeted CalPERS, as seen in demonstrations outside the California Energy Commission headquarters in Sacramento on Nov. 29, 2022. The report says these activists oppose fossil fuels and companies linked to the Trump administration.

Who is Leading the Charge?

The report does not specify which activist groups are leading the divestment campaigns. However, it is clear that these groups are leveraging the significant influence of CalPERS and CalSTRS to push for political and environmental change. The funds' investments in companies like Tesla, Palantir, and fossil fuel giants make them prime targets for these campaigns .

Broader Implications for Public Pensions

This divestment push is not unique to California. Public pension funds across the country are facing similar pressures to align their investments with political and environmental values. The report suggests that the campaigns against CalPERS and CalSTRS could set a precedent for other pension funds, influencing how they manage their assets in the future.