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(Bloomberg) — The California Public Employees’ Retirement System recently opened a new chapter in socially responsible investing (aka environment, social, and governance, or ESG, investing) when its investment committee decided to start requiring that the boards of the companies it invests in include climate change experts.  

With this move, CalPERS is attempting to turn ESG investing on its head. Rather than divest from companies it deems undesirable, it will engage those companies and attempt to improve them from the inside.

 

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