Enhanced financing in a climate change-focused stock market index by New York's pension fund

New York State Common Retirement Fund Takes Steps to Combat Climate Change

The New York State Common Retirement Fund, with assets totaling $267.7 billion, is taking active steps to address climate change and reduce its carbon footprint.

The pension fund has engaged with numerous portfolio companies to disclose their climate transition action plans. Notable examples include Southwest Airlines, Cleveland-Cliffs, and WEC Energy Group. The latter has also committed to publicly disclose a feasibility study on integrating climate metrics into its executive compensation plan.

The fund has also been successful in engaging with companies like McDonald's to address supply chain climate-related risks. McDonald's has agreed to assess water-related business risks and set water quality and quantity targets.

In terms of investments, the New York State Common Retirement Fund has committed $300 million to Copenhagen Infrastructure V, $200 million to Caryle Renewable and Sustainable Energy Fund II, and $450 million to EQT Fund VI. These investments are aimed at supporting renewable energy projects and climate solutions.

The fund has also committed an additional $2 billion to the MSCI World ex-USA Climate Change Index strategy. This strategy aims to address climate-related risks by increasing the weighting of companies that engage in climate solutions and decreasing the weighting of companies that face greater climate transition risks.

The pension fund's investment in the MSCI mandate follows an initial allocation of $1 billion made in March 2023. The fund has also deployed over $22 billion to its Sustainable Investments and Climate Solutions program.

In addition to its work with portfolio companies within the Sustainable Investments and Climate Solutions program, the New York State Common Retirement Fund is also engaging with companies beyond this program to address climate-related risks.

Realty Income has agreed to adopt and publish a low-carbon transition plan, while Southwest Airlines and steel-maker Cleveland-Cliffs have agreed to set greenhouse gas emissions reduction targets. WEC Energy Group has also committed to integrating climate metrics into its executive compensation.

The New York State Common Retirement Fund has reached climate-related agreements with five portfolio companies during the 2024 proxy season. However, the search results do not provide information about which companies the fund engaged with on climate-related agreements during the 2024 shareholder meeting period.

The New York State Common Retirement Fund is demonstrating its commitment to combating climate change by actively engaging with portfolio companies and making strategic investments in renewable energy and climate solutions. The fund's efforts are aimed at reducing its overall scope 1, 2, and 3 greenhouse gas emissions intensity by a minimum of 30% relative to its benchmark.

Enhanced financing in a climate change-focused stock market index by New York's pension fund