Leading the Way on Climate Investment

Climate change poses risks to the economy, financial markets, and the Fund’s investments. Managing these risks is integral to protecting the Fund’s investments, and capitalizing on the opportunities that arise from the transition to a low-carbon economy is similarly critical to ensuring that the Fund is best-positioned for market changes stemming from the transition.

Comptroller DiNapoli’s 2025 Climate Action Plan – Update and Progress Report builds on his 2019 Climate Action Plan, and expands the Fund's longstanding, comprehensive approach to addressing climate risk and investing in climate solutions. This multi-faceted approach employs sustainable investment strategies, active engagement with portfolio companies and managers, climate-related investment risk assessments, public policy advocacy and, as a last resort, divestment.

Because of his efforts, DiNapoli has been recognized as a global leader in addressing climate change-related investment risks and pursuing opportunities for the Fund’s investments.

Climate Action Plan

In 2019, Comptroller DiNapoli released a Climate Action Plan that laid out a path for the Fund to address climate risk in its portfolio. The Fund’s 2025 Climate Action Plan update builds on many of the programs developed pursuant to the original Plan, while accounting for changes in the climate landscape and expanding the Fund’s work to address the systemic and physical risks to the Fund’s investments posed by climate change. Key components of the updated plan include:

  • actively engaging with portfolio companies and managers;
  • holding directors of companies accountable for their climate oversight and actions through proxy voting;
  • developing and utilizing industry-specific minimum standards and risk assessments to evaluate companies in high-impact sectors on their readiness to transition to a low-carbon economy;
  • advocating for public policies at the international, federal and state levels that address climate risks and create investment opportunities in climate solutions for the Fund; and
  • committing $40 billion to the Fund’s Sustainable Investment and Climate Solutions (SICS) Program.

Investing in Climate Solutions

Comptroller DiNapoli and the Fund have committed more than $26 billion to sustainable investment opportunities to date, with the goal of investing $40 billion by 2035. Finding those investment opportunities that will provide solid and sustained returns is the work of the Sustainable Investment and Climate Solutions Program. The Fund invests in clean energy, climate solutions, green buildings and infrastructure, and other sustainable investments across all asset classes.

For more information, see the Fund’s Sustainable Investment and Climate Solutions Program.

Net Zero by 2040 Goal

In December 2020, the Fund set a goal for transitioning its investment portfolio to net-zero greenhouse gas emissions by 2040. In March of 2021, the Fund joined the Paris Aligned Asset Owners Initiative and later that year set an interim goal for the Fund’s portfolio of 50 percent alignment with a 1.5-degree scenario by 2030. In addition, the Fund adopted interim engagement and investment goals for 2030 that include actively engaging with 50 percent of the Fund’s publicly traded assets in high-impact sectors on net zero by 2040 and striving to invest 75 percent of the SICS program in climate solutions.

 

Reports and Background