Statement from NYC Comptroller Lander Applauding the Affirmed Dismissal of Lawsuit Challenging Fossil Fuel Divestment by New York City Pension Funds
New York, NY – New York City Comptroller Brad Lander released a statement applauding the First Department’s decision unanimously affirming the dismissal of Wong et al v. NYCERS, a case that challenged the decision by three of New York City’s public pension funds (the Teachers’ Retirement System of the City of New York, New York City Employees’ Retirement System, and New York City Board of Education Retirement System) to divest from publicly traded fossil fuel reserve owners.
“The climate crisis remains one of the greatest threats to the global economy. Today’s ruling is another important victory for fiduciaries tasked with safeguarding pension assets and allows us to continue our important work to align our investment strategies with the evolving economic risks and opportunities posed by climate change. I applaud the court’s decision. These dangerous and misguided attempts by anti-ESG forces threaten the long-term financial security of pensioners for generations to come and seek to prevent pension system trustees from assessing the very real risks of climate change to their investment portfolios,” said New York City Comptroller Brad Lander.
The court affirmed the New York County Supreme Court’s dismissal for lack of standing, finding that the plaintiffs (less than a handful of plan members) had no injury, that their theories of possible harm are speculative, and that courts should not intervene in the discretionary investment decisions of politically accountable trustees.
The three Systems voted to divest from publicly traded fossil fuel reserve owners in 2021, following an extensive fiduciary process that assessed portfolio exposure to fossil fuel stranded asset risk, industry decline, and other financial risks stemming from climate change. The Systems completed divestment under Lander’s leadership in 2022 and subsequently adopted net zero implementation plans, which provide a path for decarbonization across their investment portfolios and the global economy.
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