Trump administration's stance that responsible investment is harmful for business has been challenged by NYC Comptroller Lander, who asserts that his investment professionals have demonstrated the opposite.
In a remarkable feat, New York City's five public pension funds have surpassed expectations yet again, achieving a 10.3% net return on investment for the fiscal year 2024-2025 [1][2]. This impressive performance not only secures retirement benefits for city employees but also generates approximately $2.18 billion in City savings through 2030.
The funds, which include the Teachers’ Retirement System, Employees’ Retirement System, Police Pension Fund, Fire Pension Fund, and Board of Education Retirement System, have demonstrated resilience and growth through a diversified asset allocation strategy [1].
A significant portion of the funds' investments is allocated to public fixed income (31.5%) and private market alternatives (25.2%) [1]. Interestingly, the largest exposure is in public equities, accounting for 43.4% of the portfolio [1].
The success of the investment strategy is attributed to its integration of responsible investing principles, a strategy used to assess and mitigate portfolio risk [1]. This approach, which prioritizes long-term returns, has been instrumental in enhancing returns and portfolio value, even amid economic challenges [1][2].
New York City Comptroller Brad Lander's office has emphasized the strong case for fiduciary duty and responsible investment based on returns [1]. Lander claimed that the results offer timely evidence in favor of responsible investment, stating that the investment professionals have proved that responsible investment is not bad for business [1].
The strategic approach to responsible investing typically includes integrating environmental, social, and governance (ESG) considerations and investing in climate solutions [1]. By 2035, all five NYC pension funds aim to increase climate solutions allocations to $50bn [1]. Three of the funds (NYCERS, TRS, and BERS) have set a net zero target of 2040 [1].
The NYC Comptroller's office will continue to move forward with its responsible investing approach, despite meritless attacks [1]. The office's commitment to sustainable investing is evident, as they strive to align investments with sustainability and climate goals while achieving strong financial performance [1].
This performance supports both retirement security for city employees and savings that allow increased City investments in social services and climate initiatives [1][2]. The NYC pension funds, with a collective pool of capital valued at $294.6bn [1], are setting an example for responsible and sustainable investing among public pensions.
[1] New York City Comptroller's Office. (2025). Fiscal Year 2024-2025 Investment Report. Retrieved from https://comptroller.nyc.gov/reports/investment-reports/
[2] New York City Department of Citywide Administrative Services. (2025). Fiscal Year 2024-2025 Comprehensive Annual Financial Report. Retrieved from https://www1.nyc.gov/assets/dcas/downloads/pdf/finance/caf-report/2025-cafr.pdf
[3] New York State Common Retirement Fund. (2023). Annual Report. Retrieved from https://www.nyscommon.org/wp-content/uploads/2023/04/NYSCRF-Annual-Report-2022.pdf
[4] New York State Common Retirement Fund. (2023). Long-Term Investment Strategy. Retrieved from https://www.nyscommon.org/about-us/investment-strategy/
- The NYC Comptroller's office emphasizes that the high returns from the city's pension funds are due in part to a strategy called responsible investing, whichintegrates environmental, social, and governance (ESG) considerations and invests in climate solutions.
- By 2035, all five NYC pension funds aim to increase climate solutions allocations to $50bn and three of the funds (NYCERS, TRS, and BERS) have set a net zero target of 2040.
- The strategic approach to responsible investing not only aligns investments with sustainability and climate goals but also enhances returns and portfolio value, even amid economic challenges, demonstrating that responsible investment is good for both the environment and personal-finance.
