Dear New Yorkers,
I’ve got some important news for New York City retirees.
Last week, the New York County Supreme Court dismissed Wong et al v. NYCERS, a case that challenged the decision by three of New York City’s pension funds (the New York City Teachers’ Retirement System, New York City Employees’ Retirement System, and New York City Board of Education Retirement System, collectively, the three Systems) to divest from publicly traded fossil fuel reserve owners.
I’m delighted that the Court dismissed this attempt by anti-ESG plaintiffs to undermine responsible investing and prevent the transition to a low-carbon economy. As the court affirmed, the plaintiffs “have not, and will not, suffer any monetary losses based upon [the pension systems’] investment decisions.”
This decision is a big win for common-sense responsible investing, for New York City’s municipal workers and retirees, and for the future of our City and our planet. After all, even the fossil fuel industry has now admitted that climate change-related risks are material financial risks.
Our pension funds are implementing ambitious and well-researched plans to address the material risks of climate change—including divesting from fossil fuels, investing in renewable energy and climate solutions, and actively engaging with our asset managers and portfolio companies to reduce their financed emissions. This includes our plan to reach net zero emissions by 2040, which you can read more about here.
Climate risk is financial risk, and fossil fuels are bad-long term investments. As fiduciary to the public pension funds, I’m doing everything in my power to protect the retirement security of our city’s 800,000 current and future retirees—from declining to register an inferior “Medicare Advantage” contract, to standing up to anti-ESG forces.
More soon,
Brad
