Trump administration's claim that responsible investing harms business has been debunked, asserts NYC Comptroller Lander, citing the success of the city's investment professionals.
The New York City public pension funds, managing a combined capital pool of $294.6 billion, are making strides in responsible investing, focusing on climate solutions and sustainability.
As of the Comptroller's disclosures, the current climate solutions allocation stands at $14.4 billion. The funds have set a net zero target of 2040 for three of the funds (NYCERS, TRS, and BERS), and they are already making significant progress. Between 2019 and 2024, they reduced emissions by 37%, surpassing their interim targets for 2025. By 2035, the funds aim to increase their climate solutions allocations to $50 billion.
The funds have developed Net Zero Implementation Plans for NYCERS, TRS, and BERS, integrating Environmental, Social, and Governance (ESG) factors to mitigate systemic financial risks posed by climate change and related issues while aiming to maximize returns. This approach includes engagement with diverse and emerging managers and setting responsible property management standards to improve investment resilience.
The pension funds returned 10.3% net of fees in fiscal year 2025, exceeding the 7% actuarial target. This strong performance reduces New York City's pension obligations by $2.18 billion over the next five years.
Steven Meier, the chief investment officer of the NYC retirement systems, emphasizes the importance of a steady and long-term investment approach. The responsible investment strategy prioritizing long-term returns has contributed to the strong results.
The largest exposure of the NYC pension funds' investment portfolio is in public equities (43.4%), followed by public fixed income (31.5%), and private market alternatives (25.2%).
Despite meritless attacks, the NYC Comptroller's office will continue to move forward with its responsible investing approach. The Comptroller, Brad Lander, claims that the strong investment returns provide timely evidence in favour of responsible investment, contradicting previous claims that responsible investment is bad for business.
The NYC Comptroller's office remains focused on thoughtful portfolio construction and disciplined manager selection to continue maximizing portfolio value and delivering strong returns. The office also emphasizes the strong case for fiduciary duty and responsible investment based on returns.
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- The NYC Comptroller's office is working towards increasing the climate solutions allocations in the city's pension funds from the current $14.4 billion to $50 billion by 2035.
- The New York City public pension funds, which manage a combined capital pool of $294.6 billion, have adopted a long-term investment strategy prioritizing climate solutions, sustainability, and responsible investment.
- By 2040, the NYCERS, TRS, and BERS funds aim to reach a net zero target, and they have already made significant progress, reducing emissions by 37% between 2019 and 2024.
- The pension funds' responsible investing approach, which includes integrating Environmental, Social, and Governance (ESG) factors, has contributed to a 10.3% net return in fiscal year 2025, exceeding the 7% actuarial target and reducing New York City's pension obligations by $2.18 billion over the next five years.
