NYC Comptroller hails ‘clear and decisive’ victory in fossil fuel divestment lawsuit

NYC Comptroller Brad Lander has welcomed a decision from New York’s highest court dismissing a leave to appeal motion in a lawsuit that challenged a 2021 fossil fuel divestment decision taken by three of New York City’s public pension plans.

“Today’s ruling by New York’s highest court is a clear and decisive victory. Climate change is a clear financial risk that must be managed responsibly. Despite this reality, anti-ESG forces continue to wage misguided attacks, in the courtroom and beyond, that seek to weaken and thwart sound risk mitigation strategies altogether”, Lander said in a statement.

The lawsuit, Wong et al v. NYCERS, was filed in 2023, two years after the pension funds divested from listed fossil fuel reserve owners. It alleges that the pension funds’ decision to divest from fossil fuel constitutes a breach of fiduciary duty. A New York trial court had dismissed the lawsuit and found that the plaintiff’s claim of possible harm from the decision were speculative.

The New York Court of Appeals then dismissed the plaintiff’s motion for leave to appeal this decision.

Lander’s statement welcomes the court’s decision and reaffirms that fossil fuel divestment was in line with pension funds’ fiduciary duty.

“Our first and foremost priority is to safeguard the retirement security of the municipal workers and retirees who have often spent decades keeping New York City running. We remain committed to our fiduciary duty by executing a responsible investment strategy that is focused on long-term value”, the statement says.