NYS Pension Commits Extra $2.4B for Sustainable Investments
Investment in fossil fuel companies is thwarted, with existing securities worth $31.1 million being sold carefully.
The goal is to usher in climate technologies and solutions in the US.
The New York State Pension Fund has committed an extra $2.4 billion for sustainable investments and climate solutions, announced State Comptroller Thomas P. DiNapoli, trustee of the Fund.
This announcement is part of the Fund’s efforts to mitigate the climate crisis and capitalise on opportunities in climate solutions. The commitment is made under its Sustainable Investments and Climate Solutions (SICS) Programme.
The object of SICS is to attract investments into specific areas that focus on fighting climate change and deliver long-term financial returns. With this allocation, the Fund has committed over $26.5 billion toward its goal of investing $40 billion in sustainable projects.
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The specific investments include the following:
Setting aside $2 billion for the FTSE Russell TPI 1000 Climate Transition Index, which assesses businesses based on their carbon emissions, green revenues, fossil fuel reserves, and other criteria;
Reserving $250 million for the Oaktree Power Opportunities Fund VII; and
Assigning $150 million to Vision Ridge Partners Sustainable Asset Fund IV.
In addition, the Fund has conducted its annual review of investments in thermal coal, oil sands, shale oil, and gas companies. Consequently, it stopped investing in companies reluctant to transition to a low-carbon economy, including Kinetic Development Group, PT Petrindo Jaya Kreasi Tbk., and Yancoal Australia Ltd.
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It also vowed not to purchase or hold any new assets in these companies and will gradually sell existing securities worth $31.1 million cautiously.
“Climate change poses a real threat to our investments, but the actions announced today will help position the Fund to address those risks and seize on opportunities generated as the world transitions to a low-carbon economy,” DiNapoli said. “The Fund is a leader on addressing the investment challenges posed by climate change and our efforts continue. Over one million members and beneficiaries depend on the Fund’s long-term strength for a secure pension. These latest investments continue our commitment to prudently reduce risks to our portfolio and protect the Fund.”
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