Climate change is one of the greatest risks to the Fund’s investments and the economy as a whole. Comptroller DiNapoli has been a global leader in addressing climate-related investment risk and seeking opportunities presented by the worldwide effort to transition to a cleaner economy. In June 2019, he announced a new Climate Action Plan that, among other steps, will set minimum standards for thermal coal and other sectors and industries that pose climate risks to the Fund’s long-term value.
In December 2020, he expanded the Plan, setting a 2040 target for net zero carbon emissions and announced a timeline for completing assessment of minimum standards across the Fund’s energy sector holdings. Under the Plan, which builds on the recommendations of the Decarbonization Advisory Panel for achieving sustainability, the Fund may divest from companies that fail to meet its standards. It will also engage with external managers and index providers on their climate-related strategies. Learn more about the Climate Action Plan.
As part of the Climate Action Plan, DiNapoli is expanding the Sustainable Investment-Climate Solutions Program, which he initiated in 2008. Through the program, DiNapoli has committed more than $10 billion to invest in climate solutions and other sustainable opportunities. Over the next decade the program will be doubled to $20 billion. Learn more about the Sustainable Investments and Climate Solutions Program.
Labor Standards & Human Rights
Protecting the health, safety, and rights of employees, including those in a company’s supply chain, is critically important to fostering long-term success. Human rights violations, resulting from the labor practices of corporations or their suppliers, can result in significant legal and reputational harm. Comptroller DiNapoli regularly asks companies to require their major suppliers to uphold global labor standards and publicly report on the impact of their operations. The Fund has paid particular attention to corporations with extensive overseas operations, which are more likely to operate in areas with fewer worker protections and weaker enforcement.