New York State’s $280 billion pension fund is dumping its investments in 21 shale oil and gas companies, Comptroller Thomas DiNapoli’s office announced Wednesday.
The divestment, representing $238 million, is one of several rounds the fund is making as part of a climate action plan announced more than a year ago, which includes a goal of net zero by 2040 for the portfolio. Previously, the fund dropped 34 companies after a review of oil sands and coal businesses. It will next evaluate its integrated oil and gas holdings, according to this week’s announcement.
The 21 shale oil and gas companies that are part of the most recent divestment “have failed to demonstrate they are prepared for the transition to a low-carbon economy,” according to the statement. Among other holdings, the list of firms includes Pioneer Natural Resources Co., Hess Corp., and Chesapeake Energy Corp. The holdings “will be sold in a prudent manner and timeframe, consistent with the comptroller’s fiduciary duty,” DiNapoli’s office stated.
The recent review included a total of 42 shale oil and gas companies, half of which remain investments within the pension fund.
The pension system’s climate action plan includes a goal of placing $20 billion in sustainable investments, $11 million of which has been committed so far, according to the fund’s 2021 annual report.
Last year, the pension also revised its ESG scorecards for investments with external managers, adding climate-specific criteria including “governance, risk assessments, engagements, proxy voting and climate reporting in line with [Task Force on Climate-related Financial Disclosures] recommendations,” the annual report noted.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
