Dear New Yorkers,

If you’re a public sector employee or retiree, you may want to read this.  

In May, three of New York City’s pension funds (Teachers’ Retirement System, New York City Employees’ Retirement System, and Board of Education Retirement System) were hit with a baseless lawsuit challenging their decision to divest from fossil fuel companies.

(Rest assured, this litigation will not impact pension payments. On a related note, read here to learn more about the 8% returns we just announced for the five NYC pension funds for fiscal year 2023.)

The lawsuit, Wong et al v. NYCERS, is a weak attempt by anti-ESG forces to undermine the decision of these three funds to divest from fossil fuel companies. It seeks to protect those companies, and pays no mind to the future of retirees or the future of our planet.  

Last Monday, these three funds filed a motion to dismiss this bogus lawsuit. I will always uphold my fiduciary duty to ensure long-term sustainability and security for generations of city workers to come.

I’m proud that these pension funds are implementing ambitious plans to divest from fossil fuels and reach net zero across portfolios by 2040. You can read more about the divestment plans here. 

In 2021, recognizing the threat climate-change related risks pose to their portfolios, the Teachers’ Retirement System, the New York City Employees’ Retirement System, and the Board of Education Retirement System voted to divest from publicly traded fossil fuel reserve owners. This followed an extensive analysis of portfolio exposure to fossil fuel stranded asset risk, industry decline, and other financial risks stemming from climate change.

In other words, these divestment plans are well-researched and address the responsibility that investment managers and portfolio companies have to transition to a low-carbon economy. 

The lawsuit against these three funds is a waste of time and a drain on public resources. Frankly, the courts should call it what it is, and dismiss it with prejudice. 

I’ll be following this closely and will send updates as they occur. In the meantime, you can learn more about city pensions and asset management here.  

Thanks for reading,  

Brad