NY retired teachers fund calls time on fossil investments

The New York State Teachers' Retirement System (NYSTRS) said in late December it would cease its investments in 20 oil, gas and thermal coal reserve holdings with a combined market value of $1bn, as they "post climate-related risks."

The fund also said it would be divesting $66mn worth of other thermal coal holdings.

"NYSTRS fully understands its important responsibility as an institutional investor to actively pursue the path to a climate-conscious future," chief investment officer Thomas K Lee said. "This initial climate action plan squarely puts the system on that path, while remaining consistent with NYSTRS' fiduciary duties."

Specifically, the fund said it would not invest any more in the 10 largest positions it holds in companies that generate over 20% of their revenue from oil and gas or produce more than 0.1 gigatons of potential CO₂ emissions from oil and gas reserves. It also rules out companies that derive more than 10% of their revenues from oil sand developments.

In addition, the fund rules out further investments in the 10 largest positions it has in companies that emit more than 0.3 gigatons of CO₂ from thermal coal reserves.