The $533.4 billion California Public Employees' Retirement System is taking a stronger stance on diversity, equity and inclusion with its new 2025 proxy-voting guidelines, reports Rob Kozlowski.

• Under the updated policy, CalPERS may withhold votes from director nominees who demonstrate failed oversight or lack of commitment to labor issues, including DEI initiatives.
  
  
• The nation’s largest public pension fund is actively engaging with 16 companies regarding their reported rollback of DEI initiatives and plans to monitor company activity during the 2025 proxy season, according to a global public equity proxy-voting and corporate engagement update included with materials for its upcoming March 17 investment committee meeting,
  
  
• The move aligns with CalPERS' labor principles, which emphasize eliminating discrimination in employment and occupation and seek to improve diversity, equity and inclusion across portfolio investments.

Source: Pensions and Investments Magazine