NEWS

NYC Employees’ joins Net-Zero Asset Owner Alliance

By Muskan Arora

The $89.6bn New York City Employees’ Retirement System, one of the five pension funds in NYC retirement system has joined the Net-Zero Asset Owner Alliance, confirmed Brad Lander, the city comptroller on November 14.

In 2022, the pension plan divested from fossil fuel reserve owners in its public equity and corporate bond portfolios.

With a long-term intention to invest pro climate, it is yet to be disclosed whether any other pension plan in the $285.4bn system has joined the alliance.

“Climate risk is financial risk, and by joining the Net-Zero Asset Owner Alliance, we reinforce our commitment to sustainable investments that protect our retirees’ futures while pushing for a resilient, net-zero economy,” said Lander, investment advisor and custodian for the five pension funds, in a recent news release.


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NYCERS is the second largest pension fund in the city retirement system, with the $109.2bn New Yok City Teachers’ Retirement System being the largest. Each pension plan has a separate board of trustees.

Following the decision to divest from fossil fuel in 2022, the system also vouched excluding upstream fossil fuel investments including exploration and extraction within its private market investments in 2023.

Further, the pension plan also adopted a net zero by 2040 goal and adopted a Net Zero Implementation Plan in early 2023.

This strategy includes disclosing emissions and setting interim targets, engaging portfolio companies and asset managers to be net zero-aligned by strengthening partnerships with other investors to make a change.

The U.N. convened Net-Zero Asset Owner Alliance is a member led initiative of 89 institutional investors with $8.9tr assets under management.

"These investors are committed to aligning their investment portfolios with the Paris Agreement's goal of achieving net-zero greenhouse gas emissions by 2050,” stated the press release.