US. New York’s public pension fund to divest from 21 companies over transition risk
New York’s public pension fund has announced it will divest from nearly two dozen stocks involved in shale oil and gas production.
The New York State Common Retirement Fund, which manages around $280 bn on behalf of more than one million individuals, says the 21 companies have ‘failed to demonstrate they are prepared for the transition to a low-carbon economy’.
‘As market forces and new policies drive the energy transition, we must align our investments with a profitable and dynamic future,’ says Thomas DiNapoli (pictured), New York State Comptroller, who acts as trustee of the fund.
‘The shale oil and gas industry faces numerous obstacles going forward that pose risks to its financial performance. To protect the state pension fund, we are restricting investments in companies that we believe are unprepared to adapt to a low-carbon future.’
Investors are increasingly focused on transition risk – the danger for companies of changing regulations and investments as societies try to reduce their reliance on carbon and embrace greener energy sources.
Reda more @IR Magazine
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