The New York State Common Retirement Fund (NYSCRF) plans to modify its investment strategies by restricting its holdings in eight integrated oil and gas firms. Among these changes is the divestment of a significant portion of their shares in specific companies. This decision forms part of broader efforts to respond to potential financial risks associated with climate change, reflecting the Fund's commitment to align its investment practices with environmental sustainability.
1. The New York State Common Retirement Fund (NYSCRF) plans to alter its investment strategies by reducing its holdings in eight integrated oil and gas companies.
2. The fund's decision is based on the desire to navigate potential financial risks associated with climate change; the move reflects its commitment to align with environmental sustainability.
3. After careful evaluation, the NYSCRF has identified these eight companies as a potential risk due to their failure or unwillingness to transition to low-carbon measures.
4. The identified firms pose both environmental and financial risks due to their lack of transition readiness, making them incompatible with the fund's long-term investment strategy.
5. Alongside this, the fund has announced its plans to fully divest from three specific companies within the oil and gas sector.
The NYSCRF managed about $226 billion in assets as of 2021, making it the third-largest pension fund in the United States.
After conducting a thorough assessment of its portfolio, the New York State Common Retirement Fund has decided to limit its investment in eight major integrated oil and gas companies. These companies have been identified as a potential risk due to their inability or unwillingness to adequately adapt to low-carbon measures. These firms are associated with not just environmental, but also financial risks due to their insubstantial transition readiness. They are not aligned with the clean, carbon-neutral goals of the future, hence, they are incompatible with the fund's long-term investment strategy. The fund has also revealed its plans on complete divestment from three specific organisations in the oil and gas sector.