New York State Pension Fund affirms new climate pledges, coinciding with a $31 million cut from fossil fuel investments
The New York State Common Retirement Fund, one of the largest public pension funds in the US with assets totaling $268bn, has announced a series of significant investments and divestments aimed at bolstering its climate-related initiatives.
In a move to combat climate change, the fund will sell the remainder of its $31.1m holdings in eight coal and shale oil and gas companies. The companies affected include 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. However, the fund's new restrictions do not apply to indirect investments in these companies through mutual funds or other investment vehicles.
The New York State Pension Fund has also made a strategic investment decision, committing $150m to the Vision Ridge Partners Sustainable Asset Fund IV. This fund focuses on North America, targeting sectors like electric power, solar, and water systems, as well as ageing infrastructure, energy efficiency, and renewable energy.
In addition, the fund will invest $250m in Oaktree's Power Opportunities Fund VII. This investment aligns with the fund's focus on private equity funds with a sustainable and socially responsible mandate.
The New York State Pension Fund has also increased its investment in the FTSE Russell TPI 1000 Climate Transition Index, doubling the existing $2bn commitment to the strategy.
Despite these investments, the fund has not yet reached its $40bn climate-related investments commitment. To date, the fund has deployed over $26.5bn towards this target.
Regarding divestment from fossil fuels, while the precise list of companies divested from is not mentioned, the pension fund has a clear climate risk mitigation strategy and has exceeded emissions reduction goals, indicating ongoing efforts to reduce fossil fuel exposure. The fund aims to reinvest at least 10% of its assets in climate-safe, socially responsible funds within five years.
In summary, the New York State Pension Fund has revealed details of around $2.4bn in new climate investments, primarily channeled into private equity funds with a sustainable and socially responsible mandate. The specific fossil fuel companies divested from are not named, but the pension fund's climate risk mitigation strategy and exceeded emissions reduction goals suggest ongoing fossil fuel divestment actions.
The New York State Pension Fund, in line with environmental-science and climate-change initiatives, has decided to sell its holdings in eight coal and shale oil and gas companies, totaling $31.1m, demonstrating a divestment from fossil fuels. Simultaneously, the fund has invested $150m in the Vision Ridge Partners Sustainable Asset Fund IV, focusing on sustainable sectors like renewable energy, aligning with its stance on financing a greener future.
