New York State Comptroller Tom DiNapoli announced $2.4 billion in additional investments of The New York State Common Retirement Fund (Fund) into what they call “climate solution opportunities.”
This latest round of investment brings the total amount of pension funds risked on climate funds to $26.5 billion, toward the state’s goal of $40 billion. The Fund is the third largest state pension fund in the U.S., with approximately $273.4 billion in assets.
Previously, DiNapoli announced that the retirement fund had a goal of net-zero portfolio emissions by 2040. The investment philosophy of the Fund states it will “keep focusing on long-term climate resilience in line with fiduciary duty.”
“Climate change poses a real threat to our investments, but the actions announced today will help position the Fund to address those risks and seize on opportunities generated as the world transitions to a low-carbon economy,” DiNapoli said. “The Fund is a leader on addressing the investment challenges posed by climate change and our efforts continue. Over one million members and beneficiaries depend on the Fund’s long-term strength for a secure pension.”
The Comptroller’s office said they would continue to actively disinvest as well as restrict buying in any fossil fuel fund including investments in 39 coal, oil sands, and shale oil and gas companies. They will also disinvest in eight coal and shale oil and gas companies that the Fund has determined are not prepared for the transition to a low-carbon economy: Kinetic Development Group Ltd., NLC India Ltd., PT Petrindo Jaya Kreasi Tbk., Yancoal Australia Ltd., Civitas Resources Inc., Peyto Exploration & Development Corp., Texas Pacific Land Corp., and Viper Energy Inc.
The Fund will not directly purchase or directly hold debt or equity securities, or invest through an actively managed account or vehicle, in these restricted companies. The newly restricted securities, valued around $31.1 million, will be sold by the Fund in a prudent manner.
Three funds have been picked as part of its Sustainable Investments and Climate Solutions (SICS) Program for their focus on either the climate transition or supporting green infrastructure.
- $2 billion to the FTSE Russell TPI 1000 Climate Transition Index, an index fund that examines companies’ fossil fuel reserves, carbon emissions, green revenues, management quality and carbon performance.
- $250 million to the Oaktree Power Opportunities Fund VII, a fund targeting investments supporting infrastructure, including electric power, solar, and water systems though investments in aging infrastructure, energy efficiency, and renewable energy, primarily in North America.
- $150 million to the Vision Ridge Partners Sustainable Asset Fund IV, a fund targeting investments focusing on climate mitigation and adaptation through identifying, developing, and transforming assets across energy, transportation, and agriculture, primarily in North America.