New York City pension funds exceed climate change goal

New York City pension funds will invest more than $6 billion in climate change projects, surpassing their goal of $4 billion, trustees announced Tuesday.

New York City Comptroller Scott Stringer, Mayor Bill De Blasio and other administrators said they plan to double investment in public companies offering alternative energy sources, efficient technology, prevention pollution and more, against a previous 2018 target of increasing investments to approximately $4 billion, or 2% of assets, by the end of 2021.

Combined with current liabilities, this represents more than $6 billion in the portfolio of the five New York City Retirement Systems pension funds.

Mr Stringer said in a statement that investments in climate change solutions are “in the fiduciary interest of our beneficiaries and together we are leading the charge to build a cleaner, greener future for all”. Mr Blasio said in the same statement that the pension administrators are “meeting at this time”.

In January, two New York City pension funds announced they would sell about $4 billion in securities tied to fossil fuel companies. The $77.4 billion New York City Employees Retirement System and the $91.4 billion New York City Teachers Retirement System represent the largest pension funds in the New York City system. $239.8 billion.

A third pension fund, the New York City Board of Education Retirement System, worth $7.8 billion, also voted to divest a day later, Jan. 26.

In early 2018, the trustees committed the pension system to divest from fossil fuels which they defined as coal, oil and natural gas used for power, and began to assess the portfolio’s exposure to assets locked in fossil fuels, declining industry and other financial risks stemming from the climate. cash.

In December, New York State Joint Retirement Fund Administrator Albany, New York State Comptroller Thomas P. DiNapoli announced the pension fund’s $226 billion target. transitioning its portfolio to net zero greenhouse gas emissions by 2040. The transition involves reviewing investments in energy companies within four years, assessing their readiness for transition and climate-related investment risk and divesting those that do not meet minimum standards, where consistent with its fiduciary duty.