The New York City Employees’ Retirement System (NYCERS) has joined the UN-convened Net-Zero Asset Owner Alliance (NZAOA), reinforcing its stance on climate change despite shifting political headwinds in the US.
NYCERS, the largest municipal public employee retirement system in the United States, manages approximately $89bn in assets on behalf of 350,000 current city workers and retirees. Over recent years, it has been vocal in its commitment to divest from fossil fuels across listed assets, with more recent efforts extending to private markets.
“This significant step builds on NYCERS’s history of climate leadership, underscoring our responsibility to confront the clear and present dangers of climate change,” said New York City comptroller Brad Lander. “Climate risk is financial risk, and by joining the Net-Zero Asset Owner Alliance, we reinforce our commitment to sustainable investments that protect our retirees’ futures while pushing for a resilient, net-zero economy.”
The announcement is a significant boost for the alliance at a time when political opposition to ESG (environmental, social, and governance) initiatives in the US continues to intensify. Recent months have seen political pressures prompting some managers and insurers to exit networks like Climate Action 100+, citing concerns about legal risks and reputational backlash.
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This summer, the US House Judiciary Committee, chaired by Republican Jim Jordan, issued letters to 130 financial organisations, including major asset owners such as CalPERS, the New York City Office of the Comptroller, and the New York State Common Retirement Fund. The letter accused them of violating US antitrust laws by participating in Climate Action 100+, which it labelled a “woke ESG cartel”.
However, unlike some managers who have withdrawn from networks like Climate Action 100+, asset owners seem less affected by the political climate. Funds such as NYCERS and CalPERS have publicly doubled down on their climate ambitions, signalling a continued commitment to sustainable investing and long-term climate action.
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