The top investment officer of the nation\u2019s largest teachers\u2019 pension fund actively dissuaded state workers from divesting from underperforming and ecologically devastating fossil fuel investments \u2014 then went on to buy and sell more than $1 million in oil and gas stocks, state records obtained by The Lever show.\u00a0<\/p>\n
Scott Chan, the chief investment officer for the 1 million-member, $390 billion<\/a> California State Teachers\u2019 Retirement System (CalSTRS), began trading fossil fuel stocks in 2023 \u2014 the year after he told<\/a> the teachers that divesting from the sector could potentially result in a $20 billion loss for the fund.\u00a0<\/p>\n CalSTRS, and the larger state workers\u2019 pension fund, often acts as a bellwether<\/a> for other state pension funds. If the teachers\u2019 fund had divested from fossil fuels, it could have signaled that the sector is not a reliable investment \u2014 and affected the stocks Chan subsequently invested in.\u00a0<\/p>\n It\u2019s why critics accuse Chan of prioritizing his own self-interest over workers\u2019 retirement or the environment. In addition to fueling climate change, fossil fuel stocks have been found<\/a> to routinely underperform other sectors \u2014 so much so that a 2023 study<\/a> found that CalSTRS divesting from the energy sector could have resulted in more money for its members.\u00a0<\/p>\n Chan\u2019s stock trading is \u201cdisappointing to say the least,\u201d said Deborah Silvey, a retired community college instructor and cofounder of Fossil Free California<\/a>, a group of California pension fund members pushing both CalSTRS and the larger California Public Employees\u2019 Retirement System to divest from fossil fuel companies.\u00a0<\/p>\n \u201cWe\u2019ve been working on [divestment] for over a decade, and what we\u2019ve seen is climate chaos is more real than ever,\u201d Silvey told The Lever. \u201cWe need to put our money where it should go and not in climate-damaging fuels.\u201d<\/p>\n But Chan isn\u2019t the only CalSTRS employee trading fossil fuel stocks.\u00a0<\/p>\n Create a FREE account, or log in. <\/p>\n Registered readers of The Lever get access to a limited number of free articles every month, breaking news alerts, and our Lever Daily newsletter.<\/p>\n