The New York State Common Retirement Fund (NYSCRF) has expanded its climate-focused holdings with an additional $2 billion allocation to the FTSE Russell TPI Climate Transition Index, bringing its total investment in the index fund to $4 billion. This move is part of the fund’s broader effort to build a net-zero emissions investment portfolio by 2040.
Announcing the commitment, New York State Comptroller Thomas DiNapoli said, “We are continuing to take tangible steps to build a more sustainable portfolio for our members,” underscoring the fund’s long-term climate strategy despite ongoing political volatility around energy policy.
With assets totaling $273.4 billion, NYSCRF has now dedicated $26.5 billion to climate-related investments, including green bonds, renewable energy infrastructure, and low-carbon index funds. The fund aims to increase that total to $40 billion as part of its decarbonization roadmap.
The FTSE Russell TPI Climate Transition Index screens companies based on emissions intensity, fossil fuel exposure, and green revenue contributions. It delivered a 27.9% return in the fiscal year ending March 2024—just under the Russell 1000 Index’s 30.1% return, according to NYSCRF’s latest report.
In addition to the index fund, the pension fund has allocated $400 million to private equity initiatives aligned with the energy transition. This includes $250 million to Oaktree Capital Management’s Power Opportunities Fund VII and $150 million to Vision Ridge Partners’ Sustainable Asset Fund IV—both targeting sustainable infrastructure development.
These investments come amid regulatory uncertainty, with a potential second Trump administration reportedly reassessing Biden-era clean energy and offshore wind initiatives. Still, Comptroller DiNapoli reaffirmed the fund’s position: “Despite political headwinds, we remain focused on the long-term value and resilience that sustainable investments bring to our portfolio.”
Sources: New York State Common Retirement Fund Annual Report; FTSE Russell; Remarks from Thomas DiNapoli via public statement
