Will New York State Divest from Big Oil?

New York State’s pension fund, the third-largest in the US, is contemplating divesting from fossil fuels. The decision lies with the state’s comptroller, Tom DiNapoli, who is facing increasing pressure to drop the fund’s $12 billion investment in oil and gas companies.

Divestment Decision Under Scrutiny

The New York State Common Retirement Fund, with an estimated value of $246 billion, is under scrutiny for its fossil fuel investments. Environmentalists and activists are urging DiNapoli to divest from oil and gas companies, arguing that these investments are not only harmful to the environment but also financially risky.

Climate Activists Push for Change

Climate activists are intensifying their campaigns for divestment. They argue that continuing to invest in an industry that contributes to climate change is ethically and financially unsound. They point to the falling profitability of the sector and the growing trend towards renewable energy.

Comptroller’s Stance on Divestment

So far, Comptroller DiNapoli has been reluctant to commit to divestment, stating that maintaining the investments allows the fund to influence corporate policies from within. However, he has also noted that the fund has divested from 22 coal companies and is reviewing oil and gas companies.

The decision to divest from fossil fuels by the New York State’s pension fund could set a precedent for other large pension funds. While the comptroller is yet to decide, the increasing pressure from various stakeholders may eventually prompt a shift towards more sustainable investments.