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Momentum continues to build for state pension to cut ties with risky oil and gas companies
In the lead up to the next legislative session, the DivestNY coalition, the state-wide multiracial, multigenerational movement of organizations pushing to divest $225 billion New York's Common Retirement Fund (Fund) from fossil fuels, welcomed new coalition members this month including: CODEPINK, NYCD16 Indivisible, Westchester for Change, The Climate Reality Project: Capital Region, NY Chapter, Jewish Climate Action Network NYC, Sheridan Hollow Alliance for Renewable Energy (SHARE), Indivisible Mohawk Valley, Mothers Out Front Dutchess County, Dutchess County Progressive Action Alliance and WESPAC. These ten groups see fossil fuel divestment and investing in just and equitable solutions as a key form of climate action.
"Indivisible Mohawk Valley (IMV) stands with DivestNY as it works to divest New York's pension funds from investments in fossil fuels. It's one important way that IMV can join with other New Yorkers to take action in the fight against the growing climate crisis" - Mona Perrotti, Co-Chair, Climate Crisis Working Group, Indivisible Mohawk Valley
The coalition is urging Comptroller Tom DiNapoli to exercise his fiduciary responsibility and reduce the pension fund's risk from oil and gas companies by divesting completely from fossil fuel stocks. Earlier this year, Comptroller DiNapoli took a positive step by completing the review and divestment of 22 thermal coal companies from the fund's portfolio. These coal companies were underperforming other assets and major greenhouse gas contributors. The Fund remains exposed to risky tar sands, fracking, oil services and pipeline companies and has hundreds of millions of dollars invested in the notorious Exxon.
In October, Bloomberg revealed that Exxon has plans to increase carbon emissions in coming years, but was planning on withholding this information from shareholders. The company recently announced the layoff of over 14,000 workers as it struggles with a mounting debtload, high priced expansion projects and shrinking market. The company's stock has dropped by more than 47% in the past year and it was dumped from the Dow Jones in August after 92 years. The company once had a market capitalization of over $500 billion. It is now less than $150 billion.
"Westchester for Change strongly supports the work of the DivestNY coalition because divestment is a key step for New York to take to demonstrate its commitment to addressing the climate crisis. Fossil fuel investments are a bad deal for pension holders, taxpayers and for the planet. Current and future retirees will benefit from divestment and it should happen now!" - Susan Van Dolsen and Diane Torstrup, Co-Organizers, Westchester for Change
The coalition is also supporting the advancement of the Fossil Fuel Divestment Act (S2126/A1536) which has gained dozens of news sponsors in the past year as the financials of the fossil fuel sector have worsened. The bills currently have 100 sponsors with 31 in the Senate and 69 in the Assembly. A number of incoming legislators have already indicated support for the bills. The bill would direct the state comptroller to divest the Fund from fossil fuels within 5 years. It is the most advanced state divestment legislation in the country.
In September, 1100+ Academics sent a letter to Comptroller DiNapoli urging him to divest from fossil fuels. Globally, over 1200 institutions representing more than $14 trillion in assets have committed to some level of fossil fuel divestment.
