Addressing Private Market Climate Risks in Maryland’s Retirement System

The report highlights that the Maryland State Retirement and Pension System (SRPS) has a high allocation to private markets, which obscures significant climate risks due to the opacity of these investments. It identifies specific exposure to fossil fuel assets through managers like BlackRock's Global Infrastructure Partners (GIP) V and recommends the adoption of science-based climate targets and increased disclosure to mitigate financial risk.

• The Maryland State Retirement and Pension System (SRPS) has a higher-than-average allocation to private equity compared to other public pensions. Out of $74 billion in total assets, approximately 41 percent is allocated to private markets (including Real Assets, Private Equity, and Absolute Return), with 21 percent specifically in private equity, exceeding the public pension average of 14 percent.
• Maryland SRPS has exposure to controversial fossil fuel assets through its investment in BlackRock’s Global Infrastructure Partners (GIP) V. This includes the Rio Grande LNG terminal in South Texas and the acquisition of the energy utility ALLETE and Minnesota Power. Additionally, GIP V is part of a $10.7 billion bid for AES Corporation, which operates at least 26 fossil fuel power plants across various countries, including seven coal and ten gas power plants.
• Analysis of the energy companies associated with Maryland SRPS's managers indicates a heavy tilt toward fossil fuels over renewables, with 64 percent of these companies being fossil fuel companies and 36 percent being renewable companies.
• The report proposes five policy standards for Maryland SRPS to reduce financial risk and align with a 1.5 degree pathway: aligning portfolios with science-based climate targets, disclosing fossil fuel exposure and emissions, reporting a portfolio-wide energy transition plan, integrating climate and environmental justice, and providing transparency on climate lobbying and political spending.

APA

Private Equity Stakeholder Project (2026). Addressing Private Market Climate Risks in Maryland’s Retirement System. https://pestakeholder.org/reports/addressing-private-market-climate-risks-in-marylands-retirement-system/

Chicago

Private Equity Stakeholder Project. Addressing Private Market Climate Risks in Maryland’s Retirement System. 2026. https://pestakeholder.org/reports/addressing-private-market-climate-risks-in-marylands-retirement-system/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Addressing Private Market Climate Risks in Maryland’s Retirement System |date=21 April 2026 |url=https://pestakeholder.org/reports/addressing-private-market-climate-risks-in-marylands-retirement-system/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2026addressing, author = {{Private Equity Stakeholder Project}}, title = {{Addressing Private Market Climate Risks in Maryland’s Retirement System}}, institution = {Private Equity Stakeholder Project}, year = {2026}, month = apr, url = {https://pestakeholder.org/reports/addressing-private-market-climate-risks-in-marylands-retirement-system/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }