The New York State Common Retirement Fund has committed $1.3 billion to a pair of funds as part of its Sustainable Investments and Climate Solutions (SICS) Program.
The money was committed to funds tracking the MSCI World ex-USA Climate Change Index, which is designed to address climate-related risks and opportunities by overweighting companies that will benefit from the transition to a low carbon economy, while underweighting those that face greater risks due to climate change. Key factors that are considered by this index include a company”™s carbon intensity, climate risk management, potential stranded assets, physical risk exposure and development of climate solution products and services.
“These investments will position the Fund well for the future as the world transitions to a low-carbon economy,” said State Comptroller Thomas P. DiNapoli. “The Fund is a recognized leader in addressing climate-related investment risks and pursuing opportunities created by efforts to address the climate crisis. These latest commitments will help us protect the Fund”™s long-term strength, transition its portfolio to net zero emissions by 2040 and position it for changes already happening in the markets.”
To date, the Fund has deployed over $18 billion, toward its goal of $20 billion, to specific investment opportunities in the SICS Program. DiNapoli also announced the Fund will continue to restrict investments in 22 previously restricted coal companies and will newly restrict investments in six coal companies that have not demonstrated preparedness for the transition to a low-carbon economy.
