Established in 1921, The New York State Common Retirement Fund (Fund) is a pension plan in the United States. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of the more than one million state and local government employees and retirees and their beneficiaries.
New York State Common Retirement Fund has an engagement policy regarding its engagement approach on sustainability themes and impact topics. The policy also describes how the engagement policy is applied in practice and cites case studies where it has engaged both successfully and unsuccessfully with investees on sustainability themes and impact topics. The financial institution discloses the positions it takes in its lobbying and political engagement activities on sustainability themes.
New York State Common Retirement Fund has set a target of reaching net-zero financed emissions across its entire portfolio by 2040. The financial institution discloses the key companies in high-impact sectors it has identified as priorities to engage with on climate change and discloses that alignment with the Paris Agreement is one of its engagement topics. As a member of Climate Action 100+, the Ceres Investor Network on Climate Risk, and the CDP non-disclosure campaign, the financial institution discloses that it collectively engages with its clients on the topic of climate change. The financial institution discloses that developed a Sustainable Investment and Climate Solutions Program where it has devoted USD 11 billion to specific climate solutions across all asset classes.
In terms of its approach to senior leadership accountability, while the New York State Common Retirement Fund established a Climate Action Plan team which includes the chief investment officer, it is unclear whether responsibility for all sustainability issues lies with the highest governing body. Moreover, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. No evidence was found that the financial institution commits to gender equality and women’s empowerment. It has an opportunity to disclose the proportion of women in the highest governing body and senior leadership roles as well as how it addresses any gender pay gaps.
The financial institution could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. The financial institution has an opportunity to disclose that it requires companies to which it provides financial services to have a strategy aligned with the Paris Agreement. Regarding nature and biodiversity, no evidence was found that the financial institution is committed to minimising its negative impacts or financing regenerative solutions. No evidence was found regarding the financial institution’s approach to fossil fuels, such as the amount or share of finance it directs towards fuels, or its stance on financing companies with new fossil fuel projects.
There is no evidence that the financial institution has a publicly available policy statement committing it to respect human rights. The financial institution has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. It has an opportunity to disclose the proportion of its total direct operations workforce for each employee category by age group, gender, race or ethnicity, or another indicator of diversity. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.
More about the company
United States of America
Net income: USD 76.3 billion; Total assets: USD 278 billion