New York City Employees' Retirement System, one of five pension funds in the New York City Retirement Systems, has joined the Net-Zero Asset Owner Alliance, said Brad Lander, the city comptroller in a Nov. 14 announcement.
“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 adviser and custodian for the five pension funds, in a news release.
With $89.6 billion in assets, NYCERS is the second-largest pension fund in the city retirement system. The New York City Teachers' Retirement System, with $109.2 billion, is the largest. Each pension fund has a separate board of trustees.
A Lander spokeswoman said the boards of the other pension funds in the $285.4 billion pension system have not yet reviewed whether to join the Net-Zero Asset Owner Alliance.
In 2021, NYCERS voted to divest from fossil fuel reserve owners in its public equity and corporate bond portfolios (completed in 2022) and voted to exclude upstream fossil fuel investments — exploration and extraction — in its private market investments in 2023, the news release said.
NYCERS also voted in 2021 to adopt a net zero by 2040 “aspirational goal” and adopted a Net Zero Implementation Plan in February 2023 — a four-part approach that NYCERS committed to employ to prudently achieve net-zero emissions, the release said.
This strategy covers disclosing emissions and setting interim targets; engaging portfolio companies and asset managers to be net zero-aligned by strengthening partnerships with other investors to collectively make change; investing in climate change solutions; and divesting to reduce risk.
The U.N.-convened Net-Zero Asset Owner Alliance is a member-led initiative of 89 institutional investors with $9.5 trillion in assets under management, the release said.
"These investors are committed to aligning their investment portfolios with the Paris Agreement's goal of achieving net-zero greenhouse gas emissions by 2050,” the release added.
