NYS pension fund investing $2B to help reduce risks of climate change

Sara Rizzo

News 10

Dec 9, 2021

The New York State Common Retirement Fund will invest $2 billion into the Climate Transition Index (CTI) focused on reducing the risks of climate change, announced State Comptroller Thomas P. DiNapoli. This is part of the Comptroller’s Climate Action Plan and his goal for of net-zero greenhouse gas emissions by 2040.

“The New York State Common Retirement Fund has been recognized for leading the way with its comprehensive approach to addressing the enormous challenges posed by climate change, as well as investing in the tremendous opportunities created by global efforts to address this crisis,” said DiNapoli.

The fund will allocate $2 billion within its internally managed public equity portfolio to FTSE Russell’s Russell 1000 TPI Climate Transition Index in connection with the Fund’s Sustainable Investment & Climate Solutions program.

“By using the Climate Transition Index, the fund will have an investment tool that incorporates a robust data-driven approach to invest in corporations that are ensuring their businesses are ready for the low-carbon transition and stand to perform well in the years ahead,” said DiNapoli.

The CTI uses five key criteria to evaluate corporate efforts to transition to the emerging net-zero economy. The Index examines companies’ fossil fuel reserves, carbon emissions, green revenues, management quality and carbon performance. This information will be used to overweight, underweight or exclude businesses based on their transition readiness.