New York Pension Fund Invests $2 Billion in FTSE Climate Transition Index
- $2B Added to Climate Index Fund: The New York State Common Retirement Fund increases its investment in the FTSE Russell TPI Climate Transition Index, totaling $4B in the fund.
- $26.5B in Green Assets to Date: The pension fund continues building toward its $40B climate investment target, aiming for a net-zero portfolio by 2040.
- New Private Equity Commitments: An additional $400M is allocated to sustainable infrastructure and energy transition via Oaktree and Vision Ridge funds.
The New York State Common Retirement Fund is scaling up its climate investment strategy, adding $2 billion to the FTSE Russell TPI Climate Transition Index fund. This marks the second major commitment to the index since 2021 and aligns with the pension’s push toward net-zero emissions by 2040.
“We are continuing to take tangible steps to build a more sustainable portfolio for our members,” said New York State Comptroller Thomas DiNapoli.
The $273.4 billion fund has now allocated $26.5 billion to climate-related index funds, green bonds, and renewable energy assets. Its long-term climate strategy targets $40 billion in green investments.
The FTSE Russell TPI fund, which screens companies based on carbon intensity, fossil fuel exposure, and green revenue, returned nearly 28% in the fiscal year ending March 2024. That performance slightly lagged behind the 30% return from the Russell 1000 Index, according to the fund’s latest annual report.
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In parallel, the fund committed an additional $250 million to Oaktree Capital Management’s Power Opportunities Fund VII and $150 million to Vision Ridge Partners’ Sustainable Asset Fund IV, both focused on sustainable infrastructure and energy transition projects.
These investments come amid political uncertainty. A potential second Trump administration is reviewing clean energy and offshore wind awards granted under President Biden, signaling a possible policy shift back toward fossil fuels.
“Despite political headwinds, we remain focused on the long-term value and resilience that sustainable investments bring to our portfolio,” DiNapoli added.
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