The Massachusetts Pension Reserves Investment Management Board has concluded an examination of how its active equity managers evaluate and address climate-transition risk in high-emitting companies. The review, discussed at a July committee meeting, identified notable variations in manager approaches, with some integrating climate-transition risk as a fundamental investment consideration while others continue refining their methodologies.
MassPRIM stated it will incorporate the review’s conclusions into its broader assessment of manager quality and its process for selecting new active managers. The fund manages roughly $130 billion in pension assets for Massachusetts public employees and initiated this manager-evaluation initiative in 2025 as part of its examination of how public-markets managers address climate-related risks.
Environmental advocacy groups responded positively to the development. Ben Cushing, directing the Sierra Club’s Sustainable Finance Campaign, characterized the step as significant and called on the fund to ensure that manager selection and ongoing oversight create meaningful accountability. Cushing emphasized that pension funds should expect investment firms handling workers’ retirement savings to demonstrate that material climate risks meaningfully inform their decisions and practices, with underperforming managers facing potential consequences.
Vick Mohanka of the Sierra Club’s Massachusetts Chapter echoed support for the initiative, positioning it as essential for protecting public workers’ retirement assets from climate-related financial risks. The Sierra Club has previously advocated for pension funds to leverage their relationships with asset managers to strengthen climate practices, including by establishing climate standards in manager selection and mandates. The organization endorsed a prior assessment calling on pension funds to condition manager selection on strong climate practices and set explicit consequences for non-compliance.
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