The NYC Comptroller’s Office, on behalf of the New York City Pension Funds, said it is seeking index managers who can proactively account for, and focus on, various types of indexes, including low-carbon investments, and environmental, social, and corporate governance (ESG) factors.
“Climate change is real, the science is real, and the threat to both our planet and the global economy is real,” said Stringer in a statement. “When we invest in companies that recognize the irrefutable realities of global warming, we’re making smart investment decisions and boosting returns.”
Stringer said the pension funds already have $3.6 billion invested in clean and renewable energy, and energy-efficient assets. He also said that 24% and 40% of the pension funds’ infrastructure and real estate portfolios, respectively, are in environmentally-conscious investments, and are LEED or Energy Star Certified.
The managers selected will either receive an immediate investment under a three-year contract, or become part of a pool of managers who would be eligible to compete for future allocations.
According to Fossil Free, an environmental activist group, New York City and New York state’s pension funds contain billions of dollars of investments in fossil fuel companies, including fracking companies, as well as the companies supporting the Dakota Access Pipeline. The group has called on Stringer to do more to divest from companies in the fossil fuels industry. It wants the comptroller to immediately stop any new investments in the top 200 fossil fuel companies, and divest from the top 200 fossil fuel companies by 2020.