GOV §7510.5: (a) For purposes of this section, the following definitions apply: (1) “Board” means the Board of Administration of the Public Employees’ Retirement System or the Teachers’ Retirement Board.

(a) For purposes of this section, the following definitions apply: (1) “Board” means the Board of Administration of the Public Employees’ Retirement System or the Teachers’ Retirement Board. (2) “Climate-related financial risk” means risk that may include material financial risk posed to the fund by the effects of the changing climate, such as intense storms, rising sea levels, higher global temperatures, economic damages from carbon emissions, and other financial and transition risks due to public policies to address climate change, shifting consumer attitudes, changing economics of traditional carbon-intense industries. (3) “Fund” means the Public Employees’ Retirement Fund described in Section 20062 or the Teachers’ Retirement Fund described in Section 22167 of the Education Code. (b) To the extent the board identifies climate-related financial risk as a material risk to the fund, that risk shall be analyzed. (c) By January 1, 2020, and every three years thereafter, the board shall publicly report on its analysis of the climate-related financial risk of its public market portfolio, including the alignment of the fund with the Paris climate agreement and California climate policy goals and the exposure of the fund to long-term risks. (d) The board shall include in the reports pursuant to subdivision (c) the methods and results of the board’s engagement related to climate-related financial risk with publicly traded companies that are the most carbon intense, such as utilities, oil, and gas producers, within the fund. This component of the reports shall include both of the following: (1) A summary of climate-related financial risk-related engagement activities undertaken. (2) A description of additional action taken, or planned to be taken, by the board to address climate-related financial risk, including a list of proxy votes and shareholder proposals initiated by the board. (e) Nothing in this section shall require the board to take action as described in this section unless the board determines in good faith that the action described in this section is consistent with the fiduciary responsibilities of the board as described in Section 17 of Article XVI of the California Constitution. (f) This section shall remain in effect only until January 31, 2035, and as of that date is repealed.