New York pension fund to review oil holdings and focus more on coal investments

Aug.12 (Reuters) – America’s third-largest public pension fund on Thursday announced it was launching reviews on climate concerns over $ 640 million invested in 42 shale oil and gas companies, including ConocoPhillips (COP. N), Hess (HES.N) and Pioneer Natural Resources (PXD.N).

The New York State pension fund’s move comes days after the United Nations Intergovernmental Panel on Climate Change signaled global warming was almost out of control and called its findings “death knell.” for coal and fossil fuels ”.

Major investors, including BlackRock, have reassessed their holdings in fossil fuel producers and urged energy executives to cut emissions and prepare for a lower carbon world. After completing its shale review, the New York fund plans to turn next to oil and gas pipeline and processing investments, he said.

Representatives for ConocoPhillips, Hess and Pioneer did not immediately respond to requests for comment.

“This announcement is very important given the size of the pension fund. It has significant influence in all matters relating to investments,” said Richard Brooks of environmental activist group Stand.earth.

The $ 268 billion New York fund has already sold some coal assets and said Thursday it will restrict investment in others, including stakes in New Hope Corp (NHC.AX) and Whitehaven Coal (WHC. AX).

He plans to examine a wide range of shale oil and gas producers as part of a climate action plan announced last year. The systematic review of energy investments aims to achieve zero net emissions for its investment portfolio by 2040.

“We want to see our businesses succeed and we want them to be there.… We are just deeply concerned that companies most at risk of transition may not be successful in this transition,” said Liz Gordon, Managing Director executive. corporate governance for the fund.

The New York Common Retirement Fund recently restricted its investments in six Canadian oil sands companies, including Exxon’s Imperial Oil Ltd. (IMO.TO) and Canadian Natural Resources (CNQ.TO).

Reporting by Liz Hampton in Denver; Editing by Aurora Ellis

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