The $226 billion New York State Common Retirement Fund (NYSCRF), has set a goal to transition its portfolio to net-zero greenhouse gas emissions by 2040.
The process will include completion within four years of a review of investments in energy sector companies, followed by divestments in companies that fail to meet the new energy emission standards.
This will ensure the fund’s portfolio adapts to the transition set out by the Paris Agreement, which dictates that the world move toward net-zero emissions targets by 2050.
The fund already has set minimum standards for the thermal coal mining industry and divested from 22 coal companies. In addition, NYSCRF is also evaluating nine oil sands companies, and plans to develop minimum standards for investments in shale oil and gas. Minimum standards for other companies in the oil and gas sectors will be completed by 2025, and NYSCRF will determine which companies are suitable to remain in the fund’s portfolio.
