The New York State Common Retirement Fund (Fund) has committed approximately $400 million to two funds as part of its Sustainable Investments and Climate Solutions (SICS) Program, State Comptroller Thomas P. DiNapoli, trustee of the Fund, announced today.
This action is tied to DiNapoli’s comprehensive Climate Action Plan to lower investment risks from climate change and transition the portfolio to net zero greenhouse gas emissions.
“While climate change poses investment risks, it also creates opportunities for the state pension fund to invest in the companies and funds that are best positioned for the low-carbon future,” DiNapoli said. “The commitments we announced today aim to take advantage of the growth in climate investing and to strengthen our portfolio for the long-term.”
The Fund committed approximately $300 million to Copenhagen Infrastructure Partners IV, a European investment fund that will focus on investments in renewable assets including onshore and offshore wind and solar, as well as climate infrastructure assets that support renewable power.
Additionally, the Fund committed $100 million to Excelsior Renewable Energy Investment Fund I, a North American-focused investment fund that will target investments in renewable power assets such as solar and wind.
Background on Climate Investment Actions
Since taking office in 2007, DiNapoli has been recognized as a global leader for his efforts to protect the Fund’s assets, address material risks from climate change, and pursue sustainable investment opportunities. In 2019, DiNapoli released a Climate Action Plan, a multifaceted strategy that includes a goal of committing $20 billion to sustainable investments, dedicated staff to pursue climate solution investments, and minimum standards for portfolio companies that will inform engagements, investments, and potential divestment decisions.
Building on the Climate Action Plan’s solid foundation, in December 2020, DiNapoli announced that the Fund has adopted a goal to transition its portfolio to net zero greenhouse gas emissions by 2040.
Through the SICS Program, the Fund has made commitments across asset classes including private equity, actively managed public equity, fixed income (green loans and bonds), real assets (sustainable infrastructure), and real estate.
New York State Common Retirement Fund
The New York State Common Retirement Fund is the third-largest public pension fund in the United States with assets of approximately $247.7 billion as of Dec. 31, 2020. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. It has consistently been ranked as one of the best managed and best funded plans in the nation.
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