NY Pension Adds $1.3B to Two Climate Funds as It Transitions to Net-Zero

New York State Comptroller Thomas DiNapoli announced two fund investments as part of the New York State Common Retirement Fund’s sustainable investments and climate solutions program.

The $242 billion pension fund committed $1 billion to funds tracking the MSCI World ex-USA Climate Change Index. Another $300 million was committed last year to the Carval Clean Energy Fund II, a credit fund focusing on opportunities in clean and renewable energy, energy efficiency and energy storage, primarily in North America and Europe.

To date, the Fund has deployed over $18 billion toward its goal of $20 billion to specific investment opportunities in the sustainable investment program. Allocations span asset classes including actively and passively managed public equity, fixed income, private equity, infrastructure and real estate.

“These latest commitments will help us protect the Fund’s long-term strength, transition its portfolio to net zero emissions by 2040 and position it for changes already happening in the markets,” DiNapoli said.

The pension fund has also completed its annual review of thermal coal and oil sands companies as part of its broader transition. Officials will continue to restrict investments in 22 previously restricted coal companies and will newly restrict investments in six coal companies.

Holdings in these companies will be sold, including approximately $19.9 million in thermal coal and $27.9 million in oil sands securities.

The six coal companies are: Alliance Resource Partners L.P., Geo Energy Resources Ltd., PT ABM Investama Tbk, PT Delta Dunia Makmur Tbk, PT Indonesia Asahan Aluminium (Persero), and Thungela Resources Ltd.