NY Common Retirement Fund cuts fossil fuel holdings
The New York State Common Retirement Fund has announced divestments in eight oil and gas companies whilst doubling its investments in climate solutions
The New York State Common Retirement Fund has announced divestments in eight oil and gas companies whilst doubling its investments in climate solutions.
Exxon Mobil is one of the key companies which has fallen out of favour with the fund, alongside Guanghui Energy Company Ltd., Echo Energy PLC, IOG PLC, Oil and Natural Gas Corporation Ltd, Delek Group Ltd., Dana Gas Co and Unit Corp.
The New York State Common Retirement Fund has $246.3bn in assets and is one of the largest public pension funds in the US.
State comptroller Thomas DiNapoli, trustee of the fund announced today that it will be divesting its corporate bonds and actively managed public equity holdings in eight oil and gas firms with a total value of $26.8m.
The fund will also cease to invest in private market funds focused on the extraction or production of oil, gas or coal.
In addition, DiNapoli also confirmed that the fund has met its initial goal of committing $20bn to the Sustainable Investments and Climate Solutions program, and has set a new goal of investing $40bn in that program by 2035.
The decision to scale back on the funds' fossil fuel holdings follows a broader review by DiNapoli of the transition readiness of energy sector investments that face significant climate risk.
Having completed the first stage of the review, DiNapoli will now assess the climate readiness of major US utility firms.
“Climate change is an increasingly urgent risk facing all investors, and I am determined to protect the state’s pension fund by keeping it at the forefront of efforts to mitigate risks to our investments. This reduces our fund’s exposure to fossil fuels” DiNapoli said.
Climate change is an increasingly urgent risk facing all investors, and I am determined to protect the state’s pension fund by keeping it at the forefront of efforts to mitigate risks to our investments
Campaigners welcomed the decision to scale back the New York Common Retirement Fund’s holdings in fossil fuels but pointed out that it still holds some $500m in oil and gas shares.
The campaign group Divest New York said it was “disturbing” that he had not adjusted the funds investments in BP, Chevron, Occidental, Petrobras, Shell, and Saudi Aramco.
“New York State is taking a stride forward to cut ties with the most recalcitrant fossil fuel company: Exxon. While the best outcome for pensioners and the planet is full divestment from Big Oil, this acknowledges that Exxon is a failing company and divestment is a winning strategy. Twinning this with a real limit on new investments in fossil fuel exposed private equity funds and a boost to climate solutions investments reinforces where we are headed – a fossil free world. Comptroller DiNapoli must do more in line with the urgency of the moment,” said Amy Gray, associate director of Climate Finance with Stand.earth and coordinator of the Climate Safe Pensions Network.
The comptroller's decision to cut back its fossil fuel exposure follows an announcement by three New York City funds with assets totalling more than $185 billion who have fully divested from fossil fuels, resulting in the sale of more than $3bn in fossil fuel shares two years ago.
Just last week, Dutch pension fund PFZW also announced the sale of €2.8bn in fossil fuel holdings.
Exclusive: New York State Comptroller: "We cannot divest our way to net zero"
Dutch pension fund divests €2.8bn from Shell, BP and other fossil fuel firms
