Photo Courtesy of Susan Watts/Office of the City Comptroller
“Today is a major victory for our planet, our children, and our pensioners,” Comptroller Stringer said.
By Forum Staff
Mayor Bill de Blasio, City Comptroller Scott Stringer, and trustees of the New York City Employees’ Retirement System (NYCERS) and the New York City Board of Education Retirement System (BERS) announced the successful divestment of securities related to fossil fuel companies, bringing the total divestment across all funds to an estimated $3 billion.
The divestment, one of the largest in the world, will address the significant financial and environmental risks that these fossil fuel holdings pose to the funds and to our planet. The announcement by the Mayor, Comptroller, and Trustees follows an extensive and thorough fiduciary process to prudently assess the portfolio’s exposure to fossil fuel stranded asset risk and industry decline and other financial risks stemming from climate change.
“Today is a major victory for our planet, our children, and our pensioners,” said Stringer. “The successful divestment of $3 billion out of fossil fuels is proof-positive that environmental and fiscal responsibility go hand-in-hand. New York City is leading the way toward a clean, green and sustainable economy, and the impacts of the actions we are announcing today will be felt for generations to come. Today is made possible by so many people—the trustees whose leadership and steadfast commitment to our pensioners’ retirement security kept this process on track, investment experts who made sure that every step of this process was thoughtful and fiduciarily sound, to advocates who sounded the alarm about the growing financial and environmental risks posed by climate change. Thank you for standing up for a cleaner, greener, brighter future.”
In January 2018, the trustees announced a goal to divest from fossil fuel reserve owners within five years, consistent with fiduciary duty; thereby, making New York City the first major city in the nation to commit to divesting major public pension funds from fossil fuel reserve companies. The Systems retained independent investment consultants who conducted investment analyses showing the risks posed by fossil fuel companies and the prudent nature of the divestment actions adopted by the Boards.
The New York City Employees’ Retirement System (NYCERS) and the New York City Board of Education Retirement System (BERS) have completed their process of divesting approximately $1.8 billion and $100 million in securities, respectively. The New York City Teachers’ Retirement System’s (TRS) divestment is underway with over $1 billion divested to date, and is expected to be complete by Q1 2022 with approximately $1 billion remaining. Securities were identified based on demonstrated risk from fossil fuel reserves and business activity, and the trustees will continue to evaluate risk in their portfolios to determine additional actions as warranted. TRS utilized a different investment consultant and employed different criteria to identify a different overall list of securities to divest than NYCERS and BERS. The names of TRS’ divested securities will be released upon completion of its divestment.
“From the destruction inflicted on our coastal communities during Superstorm Sandy to the unprecedented flooding of our inland neighborhoods during Hurricane Ida, no borough has felt the severe sting of climate change like Queens. By successfully divesting billions of dollars from fossil fuel-related securities that directly contribute to a warming planet, New York City is once again claiming its place at the forefront of the global green revolution,” said Queens Borough President Donovan Richards, Jr.
