The New York State Common Retirement Fund Pledged to Reach Net-Zero Greenhouse Gas Emissions across its Investments by 2040, a Decade before any other U.S. Pension Plan, and may Divest from the Riskiest Oil and Gas Companies by 2025.

The $226.4 Billion Public Plan, the Third-Largest in the U.S., said it will Finish Reviewing All its Fossil-Fuel Holdings and related Businesses within Four years. The Fund is looking at its Climate-related Investment Risks, how Companies are preparing for the Transition to a Low-Carbon Economy and Selling Shares in those that Fail to meet Standards.

“Achieving net-zero carbon emissions by 2040 will put the fund in a strong position for the future mapped out in the Paris Agreement,” Comptroller, Thomas P. DiNapoli (D) said in a Statement on Wednesday. “We continue to assess energy sector companies in our portfolio for their future ability to provide investment returns in light of the global consensus on climate change.”

The New York Fund initiated a Climate Action Plan last year to address Risks across its Investment Portfolio, and as a result, it said in July it would Sell Shares in 22 Thermal Coal Mining Companies. DiNapoli, the Sole Trustee of the Plan, has faced Pressure from Environmental Advocates, Scientists, and some Lawmakers to Fully Divest High-Carbon Emitters. The Pension Fund was among the 40 Largest Shareholders of Exxon Mobil Corp. at the End of September, owning 8.5 Million Shares.

Other Large Pension Investors have taken Action to Reduce their Carbon Footprints, including the California Public Employees’ Retirement System and Australia’s Retail Employees Superannuation Trust, which have Committed to Transition their Investments to Net-Zero Emissions by 2050.

New York’s Announcement is the “biggest leap forward worldwide on climate finance action in 2020,” the #DivestNY Coalition, a Group of Environmental Advocates, said in a Statement. It’s “the most comprehensive program” to Divest from Fossil Fuels, Decarbonize across a Large Portfolio, and put Financial Pressure on Publicly Traded Companies, the Group said.

The New York Retirement Fund said it will boost its Engagement with Companies, Encouraging them to Move to Net-Zero Emissions more quickly by Voting against Directors who Fail to Act on Climate Change.

The Fund also said it’s Finishing Evaluating Nine Oil-Sands Companies, and Plans to Develop Minimum Standards for Investments in Shale Oil and Gas. It will do the same for the Oil Majors, as well as related Equipment, Transportation, and Storage Companies.

After Finishing the Reviews, the Fund will continue to Assess whether Companies are Meeting Standards and are on Viable Path to a Low-Carbon Economy, DiNapoli said, adding that the Plan will be Hiring more Staff to Work on the Efforts.

DiNapoli has in the past Resisted calls to stay Clear of Fossil-Fuel Companies, saying the Fund prefers to Engage with Businesses to Encourage them to do More about Global Warming.

“Divestment is a last resort, but it is an investment tool we can apply to companies that consistently put our investment’s long-term value at risk,” DiNapoli said in Wednesday’s Statement.

The Announcement comes as the State moves to Implement its Climate Action Law, the most Aggressive in the Nation, Signed by Governor Andrew Cuomo (D) in July 2019. The Law codifies the State’s Goal of getting All its Electricity from Emission-Free Sources by 2040 and an 85% Reduction in Economy-Wide Emissions by 2050 from 1990 Levels.










NYC Wins When Everyone Can Vote! Michael H. Drucker