New York State Comptroller Tom DiNapoli announced Monday that the state’s pension fund committed an additional $2.4 billion toward climate-focused investments. The move supports the fund’s strategy to reduce climate-related risk and benefit from the clean energy transition.
The New York State Common Retirement Fund has now invested over $26.5 billion through its Sustainable Investments and Climate Solutions (SICS) Program. The fund is working toward a target of $40 billion by 2035.
Climate risk drives investment choices
“Climate change poses a real threat to our investments,” DiNapoli said. “These actions reduce our exposure to risk and help us capture opportunities as the world moves toward a low-carbon economy.”
The new investments include:
- $2 billion in the FTSE Russell TPI 1000 Climate Transition Index, which weighs global companies based on carbon performance, fossil fuel exposure, and green revenue.
- $250 million in the Oaktree Power Opportunities Fund VII, which supports renewable energy and infrastructure projects in North America.
- $150 million in the Vision Ridge Partners Sustainable Asset Fund IV, which targets energy, transportation, and agriculture projects that support climate adaptation and mitigation.
Fund divests from fossil fuel laggards
The fund completed its annual review of fossil fuel holdings. As a result:
- It added eight companies to its restricted list due to poor climate transition readiness.
- These companies include Civitas Resources, Texas Pacific Land Corp., and Yancoal Australia.
- The fund will sell $31.1 million in newly restricted securities.
It now restricts direct investments in 39 companies tied to coal, oil sands, and shale oil and gas operations.
A long-term climate strategy
Since 2007, DiNapoli has led the pension fund’s efforts to address climate risk. In 2019, he set a $20 billion goal for sustainable investments. After meeting that target, he raised the goal to $40 billion by 2035.
The SICS program spans public equity, fixed income, private equity, credit, and real assets. More than one million members and retirees depend on the fund’s performance.
“Protecting the long-term strength of the fund means investing wisely today,” DiNapoli said. “And that includes preparing for a cleaner, lower-carbon future.”
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