New York State Comptroller, Thomas DiNapoli, seemed to take the First Tentative Steps Wednesday toward Unloading the State Pension system's Holdings in coal.
DiNapoli announced that his Office would "Review" Investments in 27 Mining Companies to ascertain whether they are making the "transition to a more sustainable business model" for an Impending" Low Carbon Economy.
This move comes after years of Pressure from Environmental Groups for the State Pension system to Divest from Fossil Fuels, and months after DiNapoli released his own "Climate Action Plan" to consider Pulling the State's $210 Billion Retirement Fund Out of Polluting Industries.
The Review appears to be a Formal Prelude to Divestment, with DiNapoli indicating that Pressuring Companies to Change their Business Practices, and Selling Off Stock in those that don't, makes Good Fiduciary Sense.
"Investors who fail to face the risks and seize the opportunities presented by climate change put their portfolios in jeopardy,” DiNapoli said.
“We are assessing minimum standards for transition readiness at coal mining companies first, because they face the greatest risk as the world turns to cleaner and renewable energies. If a particular company is not ready to move away from its reliance on thermal coal mining for profits, we may divest our holdings in that company.”
The Companies targeted under the Review include both Foreign and domestic Firms, among them several based in China. They will have just a Few Weeks to Demonstrate to the Comptroller's Team that they are Shifting away from Coal Harvesting and Reducing their Greenhouse Gas Emissions so as to Hit the Goals outlined in the Global Paris Agreement on Climate Change.
Critics of of DiNapoli’s Deliberate Approach, that the State’s Decarbonization Advisory Panel, which Delivered Recommendations in April 2019, has already Called for the State to Divest its Holdings in Coal Companies this year. Some even Suggested it would make more Sense for New York State to Dump its Holdings immediately.
“The comptroller's process is laborious,” said Thomas Sanzillo, a Former Deputy Comptroller who is now Director of Finance for the Environmental Advocacy Group, the Institute for Energy Economics and Financial Analysis. “The financial failure of the coal sector is ongoing, so the time spent conducting this phase of the review will likely result in selling the stock for a lower price than exists today.”
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