Confronting the Climate Crisis

We cannot manage what we don’t measure. We will set measurable goals and benchmarks across all investments and operations, including specific interim emissions reduction targets by asset class, and disclosure of Scopes 1, 2, and 3 emissions.

View total emissions by system on the NYC Climate Dashboard.

The Comptroller’s Office will publish annual reports of progress on the Net Zero Implementation Plan. Annual reports will include status of interim emissions reductions, carbon footprint analysis, climate change solution investments, asset manager alignment, and corporate engagement. The NYC Climate Dashboard includes indicators demonstrating NYC’s net zero progress to provide transparency and accountability for the public.

Disclosure of greenhouse gas emissions and climate risk is the first step to setting interim targets for change. We strongly support the Securities and Exchange Commission’s (SEC) proposed rule changes to require publicly traded companies to include climate-related disclosures in their financial reports. The proposed rule will provide NYCRS and other shareholders with necessary data to assess a company’s climate-related financial risk and encourage companies to evaluate the threats climate change poses to their fiscal health and sustainability.

As long-term investors with holdings across all sectors of the economy, the pension funds cannot meet net zero goals without alignment with our asset managers and action by portfolio companies. We are asking all of our asset managers to set net zero goals (including measurable interim, science-based targets) and incorporating climate risk questions into our due diligence process.

We work closely with other shareholders through formal and informal coalitions, actively vote proxies, sponsor shareholder proposals, and engage directly with corporate leadership to encourage public companies to improve their climate governance, curb their GHG emissions, and strengthen their climate‐related financial disclosures. As an investor in private markets, we set clear standards and advocate directly with our investment managers to encourage strong climate action.

• Read our letter to BlackRock, the world’s largest asset manager and the firm that manages the largest share of NYC’s pension fund assets.
• Read about our 2023 shareholder proposals at Bank of America, Goldman Sachs, JPMorgan Chase, and Royal Bank of Canadacalling for the banks to disclose absolute greenhouse gas (GHG) emissions targets for 2030.
• Read more about our work with the Climate Action 100+ investor coalition to engage companies in carbon intensive sectors. As the lead investor at Ford, General Electric and General Motors on behalf of the Climate Action 100+ investor coalition, we have successfully advocated for these companies to set GHG reduction goals and to disclose their lobbying to ensure it is aligned with the goals of the Paris Climate Agreement.
• Read more about our climate related shareholder resolutions and proxy voting record.

Investing in the next generation of sustainable and resilient technologies is an opportunity both to do well for our beneficiaries and do good for the planet. New York City pension funds have set concrete goals for increasing investments in companies that derive a majority of their revenue from climate mitigation, adaptation, and resilience activities, such as renewable energy, energy efficiency, pollution prevention, and low-carbon buildings. We have set a goal of increasing investments in climate solutions to $50 billion by 2035 for all five NYC pension systems.

• View our progress towards our climate solutions investment goals on the NYC Climate Dashboard.

The International Energy Agency has been clear that keeping fossil fuels in the ground is an essential piece of the global effort to mitigate the worst effects of climate catastrophe.

In 2018, New York City Employees’ Retirement System (NYCERS), Board of Education Retirement System (BERS), and the Teachers’ Retirement System (TRS) announced their intention to divest from fossil fuel reserve owners and retained independent investment consultants who conducted investment analyses showing the risks posed by fossil fuel companies. Together, NYCERS, TRS, and BERS have completed the divestment of nearly $4 billion in public securities, one of the largest such actions in the world.

As part of the Net Zero Implementation Plan, NYCERS and TRS are asking their private markets managers to exclude prospective upstream fossil fuel investments.

Because we need broad alignment to achieve decarbonization of the real economy, rather than just our portfolio, the Net Zero Implementation Plan is focused on engaging companies and the financial community to achieve our goals. However, if companies or managers demonstrate implacable opposition to taking substantive steps to reduce their GHG emissions consistent with the goal of limiting global warming to 1.5˚ C, then the Bureau of Asset Management may recommend divestment to the trustee boards. Any divestment decision would be up to the boards based on their established policies and criteria, consistent with their fiduciary duties.

• View the list of companies that NYC divested from and more information on the NYC Climate Dashboard.