The New York State Common Retirement Fund, a $267.7 billion pension fund, announced it reached climate agreements with five portfolio companies during the 2024 proxy season.
Southwest Airlines Co. and Cleveland-Cliffs Inc. agreed to set greenhouse gas emissions targets and disclose climate transition plans. The fund made an agreement with utility company WEC Energy Group to disclose a feasibility study on integrating climate metrics into an executive compensation plan. Fast-food giant McDonalds Corp. agreed to assess supply chain water-related risks and set water quality and quantity targets. Reality Income Corp. agreed to adopt a low-carbon transition plan.
As a part of proxy voting guidelines amended in February, the fund expects all portfolio companies to report climate transition plans and other data related to environmental, social and governance factors. In the 2024 proxy season, the fund has voted against 1,900 directors at more than 600 portfolio companies the fund identified as lacking robust climate risk management.
“As trustee of the Fund, one of my top priorities is safeguarding the investments made for the benefit of the more than one million participants in the New York State retirement system,” said Thomas DiNapoli, New York state comptroller, in a statement. “To foster long-term financial success, it is essential to address the climate-oriented investment challenges faced by the Fund’s portfolio. Climate change is an increasingly urgent risk facing all investors.”
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Tags: New York, New York State Common Retirement Fund, Proxy, Proxy season, Thomas DiNapoli