New York's pension fund will review more than two dozen oil and gas companies to assess their transition to low-carbon operations, state Comptroller Tom DiNapoli's office on Friday announced.
The review all together will comprise 28 publicly traded firms.
“Oil and gas companies face significant and complex economic, environmental and regulatory challenges in the years to come,” DiNapoli said. “These companies need to be ready for the transition to the low-carbon economy of the future. While energy companies are currently making record profits driven by high prices, their long-term prospects are far less certain. As investors, we will carefully review these companies and may restrict investments in those that do not have viable plans to adapt.”
DiNapoli over the last decade has sought to use the heft of the pension fund's billions of dollars in investment muscle to encourage companies on a variety of public policy issues, from political giving transparency to climate change.
The companies will be asked to provide data on its ability to transition to a "net zero" economy. The move comes as New York state is trying to reach climate goals of more renewable and cleaner forms of energy and energy transmission by the middle of the century.
The pension fund has previously divested from 55 companies that were deemed unprepared to make the transition.