NYS Pension Fund confirms new climate commitments alongside $31m fossil fuel divestment
The New York State Pension Fund has revealed details of around $2.4bn in new climate investments whilst divesting from more than $30m held in fossil fuels.
One of the largest public pension funds in the US, the $268bn New York State Common Retirement Fund last year doubled its climate solutions pledge, committing to invest $40bn in climate-related initiatives.
As part of this ambition, the fund has now bolstered allocations to three vehicles within its Sustainable Investments and Climate Solutions (SICS) Programme, committing s total of $2.4bn to the three funds.
The fund will invest a further $2bn in the FTSE Russell TPI 1000 Climate Transition Index, an index fund that assesses companies’ fossil fuel reserves, carbon emissions, green revenues, management quality and carbon performance. This investment doubles the existing $2bn commitment to the strategy.
Moreover, the fund will invest $250m in Oaktree’s Power Opportunities Fund VII, an infrastructure fund targeting, among other sectors, electric power, solar, and water systems through investments in ageing infrastructure, energy efficiency, and renewable energy—primarily in North America.
A further $150m will be invested in the Vision Ridge Partners Sustainable Asset Fund IV, which targets climate mitigation and adaptation through identifying, developing, and transforming assets across energy, transportation, and agriculture, again with a focus on North America.
Alongside these new investments, the fund has newly restricted investment in eight coal and shale oil and gas companies it deems ill-prepared for the transition to a low-carbon economy. These are: 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.
This means the fund will not directly purchase or hold debt or equity securities in these companies, and will proceed to sell the remainder of its $31.1m holdings in them.
To date, the New York State Pension Fund has deployed over $26.5bn—toward its $40bn target—in specific investment opportunities through the SICS Programme.
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