NYC comptroller warns managers to improve climate reporting or risk divestment
The New York City Pension Systems have presented their managers with a new deadline on climate reporting, threatening to divest from those who fail to meet expectations
The five pension funds that form part of the New York City Employer Systems, collectively managing close to $300bn in assets, could soon divest from third-party managers if they fail to meet climate stewardship expectations, NYC comptroller Brad Lander revealed in conversation with Net Zero Investor.
The pension funds, which are invested with around 300 external managers, have presented their listed market managers with a 30 June deadline to report on their climate engagement efforts. This move aims to ensure that managers are aligned with the pension systems’ climate ambitions, comptroller Lander said, speaking on the Net Zero Investor podcast alongside Danielle Fugere, president and chief counsel of campaign group As You Sow.
Private markets managers will have until 30 June 2026 to meet the reporting requirement.
“We want to see their plans. I’ll be very curious to see what we get, given the times we live in and how many of them have withdrawn from the Net Zero Asset Managers initiative,” comptroller Lander said.
He also emphasised that the systems have recently joined the Net Zero Asset Owner Alliance, as a way to counter the prevailing shift away from climate alliances. “I really invite other asset owners interested to join us in the Net Zero Asset Owner Alliance. This will be a strong push in the opposite direction from what Donald Trump and the Republicans are doing,” he stressed.
Calling on asset owners to work together, he added: “Most of us are universal owners with a perpetual horizon. We bear the brunt of what will happen if we don’t hit the Paris goals — we will burn trillions of dollars collectively.”
He added that he “loved” seeing the decision by UK master trust The People’s Pension to divest £28bn from US manager State Street, amid concerns over stewardship alignment, and confirmed that the New York City Retirement Systems would also divest from managers who fail to meet expectations.
The systems are facing challenges from both sides, having been taken to court by Republican-leaning beneficiaries over their decision to divest from fossil fuels. On the other end of the political spectrum, many climate activists are demanding that the funds commit to divesting from BlackRock.
Speaking on the podcast, comptroller Lander emphasised that due process was important in order for decisions to stand up against the test of legal challenges: "We are asking all our asset managers to disclose and give us plans, we have to keep our very ambitious climate plan on solid legal footing, we pay attention so that we can be ambitious and win in court when challenge and the SEC doesn't dismiss our ambitions."
'We will not retreat one inch: NYC pension funds double down on climate commitments
