Comptroller DiNapoli Presses Pollutants on Paris Agreement Goals

Keeping greenhouse gas emitters in check with the Paris Climate Agreement goals, New York State Comptroller Thomas DiNapoli has sent letters to 10 companies within the New York State Common Retirement Fund’s (NYS Common) portfolio.

“Climate risk is one of the greatest threats to the state pension fund and its long-term investments,” DiNapoli said in the letter, addressing that the transition will require “fundamental” and sometimes “disruptive” changes that could affect every investment in the fund’s portfolio.

“As a long-term investor, we want the companies in our portfolio to demonstrate a commitment to sustainability, lower emissions, and a low-carbon future,” he wrote.

In the letters, DiNapoli urges Phillips 66; Xcel Energy; Valero Energy; Martin Marietta Materials; Berkshire Hathaway; Calpine; Delta Air Lines; NextEra Energy; Entergy Corp; and Southern Company to make long-term reductions to their emissions and adopt “time-bound, quantitative, company-wide” goals. The Comptroller also wants the companies to consider the reduction needs outlined by the Paris Climate Agreement, which sets to limit the increase in global average temperature below 2°C above pre-industrial levels with a 1.5°C limit.

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In order to meet the 2°C target, scientists estimate a 55% global reduction in greenhouse gas emissions will be needed by 2050. The US needs an estimated 80% reduction to help meet these expectations.

ExxonMobil, AES, Duke Energy, and other pollutants in the fund’s portfolio are currently in engagement programs with the fund to help curb their emissions.

The letter follows DiNapoli’s Tuesday announcement in which he revealed that DTE Energy, Dominion Energy, and Southwestern Energy had agreed to detail how the effects of efforts made to achieve the Paris Agreement’s goals will affect them as well as how each company can adapt to a lower carbon future. This led to NYS Common withdrawing shareholder requests it had previously made with DTE, Dominion, and Southwestern.

“Corporations need to recognize that a transition to a lower carbon economy is already underway and their future success demands adjusting to this new reality,” DiNapoli said in a statement. “We will continue to monitor and engage with these companies as they report on their efforts to reduce carbon emissions.”

Tags: ESG, New York State Common Retirement Fund (NYCRF), Paris agreement, Pension, Thomas P. DiNapoli

Although University College Union (UCU) members will have the option to vote on postponing the strike scheduled for the summer term, participating universities are urging union members to vote “no.”

“Like many other branches across the country, the Kent UCU position is to REJECT this proposal. You know why,” the University of Kent’s union branch Tweeted to all union members, signing off with the hashtags of #Solidarity, #RejectUUKDeal, and #VoteNO.

The union’s brigade against Universities UK’s (UUK) proposed changes to the Universities Superannuation Scheme (USS) began in February, leading to a 14-day walkout from union members across 65 UK college campuses. The proposed changes would shift the scheme from a defined benefit plan to a defined contribution, the primary driver of the industrial action.

The latest proposals from UUK, which offer a joint committee of experts to analyze and discuss the valuation and operation of the USS, are being voted on by members from April 4 at noon through April 13 at 2:00 p.m. As this does not do as much as union members had hoped, they are still aiming to keep up their assertive plans and move forward with the summer’s round of walkouts until proposals in-line with their views are put forth.

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“If members accept these proposals then the action for later this term will be suspended,” UCU General Secretary Sally Hunt said in a statement. “If they reject them then there will be 14 more days of action before the summer and a fresh ballot to keep action running in the new academic year.”

Following a meeting organized by SOAS University of London and Goldsmiths union branches, the Cambridge chapter reported its executive suggested balloters refrain from voting until there is more clarity on the situation. Cambridge UCU said it hopes to convene a meeting of branch members sometime next week.

The USS is currently valued at £60 billion ($84.4 billion), with a £12.6 billion deficit.

Tags: Pension, strikes, Universities UK, University College Union