Christopher Hanak

This document details the Washington State Investment Board's approach to investing through the energy transition and a changing climate. It meticulously assesses potential impacts, risks, and opportunities across diverse asset classes, outlining the Board's total portfolio climate risk management strategy. Key priorities include maintaining broadly diversified exposures, continuously enhancing climate-related risk measurement and monitoring, thoughtfully integrating material climate risks and opportunities into investment due diligence, and actively seeking investment strategies that support a low-carbon economy to maximize returns for beneficiaries over the long term.

The Administrative Committee meeting focused on a quarterly budget update for the period ending December 31, 2025, which included a review of both the appropriated and non-appropriated budget balances, expenditures, and projected savings for fiscal year 2026. Additionally, the committee conducted an executive session to discuss the performance, evaluation, and compensation of the Chief Executive Officer, followed by an action to recommend board approval regarding the compensation findings.

The board meeting agenda included several key presentations and reports. Discussions covered the geopolitical outlook and US policy developments. Committees provided updates, including administrative and audit reports, and investment recommendations for public and private markets. Strategic topics featured presentations on investing through energy transition and climate change, asset stewardship, corporate governance, and an annual report on economically targeted investments. Additionally, the board reviewed proxy voting records delegated to external managers and discussed the impact of generative AI and datacenter energy demands.

The board discussed several key topics including public comments on investment practices, a CEO report regarding divestment legislation and corporate ownership initiatives, and an update on the appropriated and non-appropriated budget. The board approved an investment in Public Pension Capital, LLC, reviewed quarterly investment performance, and received updates on private credit implementation and the innovation portfolio. The meeting also featured a fixed income review, a discussion on safety and security, and the evaluation and compensation of the Chief Executive Officer.

The committee meeting addressed several key business items, including investment recommendations for Charterhouse Capital Partners XII, L.P., Spark Capital IX, L.P., Spark Capital Growth VI, L.P., and Monarch Capital Partners VII, L.P. The agenda also featured an education session on private credit benchmarks and strategy, an executive session for further discussion on those topics, and a review of the committee's closing log and other administrative items.