Wednesday, December 20, 2017

NY Gov. Will Create De-Carbonization Roadmap for Retirement Fund Investments


New York Gov. Andrew Cuomo on Tuesday said he’ll work with State Comptroller Thomas DiNapoli to halt future Fossil-Fuel Investments in the massive State Pension Fund as part of what he termed a “De-Carbonization” effort.

“The Common Fund remains heavily invested in the energy economy of the past,” Cuomo said, referring to the State Pension Fund for State and Local Public Sector Employees. "This proposal lays out a roadmap for New York's $200 billion Common Fund to take responsible steps to divest from its fossil fuel holdings.”

The Governor and Comptroller also will create an Advisory Panel to develop a “De-Carbonization Roadmap” for Investing the Fund in Clean Technology and efforts to combat Climate Change. The Fund, which holds Assets for more than 1 Million People, has Investments in more than 50 Oil and Gas Companies that have been identified as among the 100 most Carbon-Intensive in the World. They have nearly $1 Billion in Exxon/Mobil alone.

Significant Divestment could take time since the Pension Fund is obligated by its Mission statement “to provide our beneficiaries with a secure pension through prudent asset management.” Still, Oil and Gas Stocks have generally lagged in the Stock Market for the past several years, according to a Chart from Morningstar investment Research firm.

Cuomo noted that the World Bank plans to End Support for Oil and Gas Exploration within the next Two years. And the Norwegian Sovereign Wealth Fund, the largest Fund of its kind in the World, is moving away from Fossil Fuel Investments. That Fund’s Wealth, however, comes largely from the Cash that Norway has realized from North Sea Oil Reserves over the years.

The agreement is notable for its scope and the way it was rolled out. Cuomo and DiNapoli have frequently jousted via their Staffers in the past over varying interpretations of Financial issues and the State Budget. And while DiNapoli is the Pension Fund’s Sole Trustee, with ultimate Authority over the Money, Cuomo made the initial Announcement.

The move, which will be noted in the Governor’s State of the State speech in January, appears to be part of a leftward tilt by Cuomo.
In addition, Cuomo has said he wants to Increase the Minimum Wage for Tipped Workers and impose tougher Laws allowing Confiscation of Guns from those Convicted of Domestic Violence Crimes.

Also on Tuesday, Cuomo said he would take Legal Action against the Iowa Pacific Co.’s storing of Unused Rail Cars on Tracks that are in the Adirondack Park Forest Preserve.









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