(Bloomberg) -- The California Public Employees' RetirementSystem recently opened a new chapter in sociallyresponsible investing (aka environment, social, and governance, orESG, investing) when its investment committee decided to startrequiring that the boards of the companies it invests in includeclimate change experts.

With this move, CalPERS is attempting to turnESG investing on its head. Rather thandivest from companies it deems undesirable, it will engage thosecompanies and attempt to improve them from the inside.

Which begs the question: What’s causing CalPERS to rethinkthe traditional levers of ESG investing?

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