Photo: Luca Bravo / Unsplash
New York City’s pension fund surpassed its net-zero target for 2025, even as the US rolls back on its climate commitments under the Trump administration.
The pension fund, which is the fourth largest in the US, reduced its financed greenhouse gas emissions by 37% between 2019 and 2024, exceeding its interim goals, New York City comptroller Brad Lander announced at the end of March.
The reduction included both scope 1 and 2 greenhouse gas emissions for its three main retirement systems that make up its pension funds – NYCERS, TRS and BERS. All three systems plan to set scope 3 emission reductions next year. It also outpaced its target for investing in renewable energy and climate solutions.
Lander pledged to increase climate disclosures and investments in green projects. The announcement was made the same week that the US Securities and Exchange Commission voted to stop defending its climate disclosure rules in court.
“We will not retreat one inch from our strong action on climate risk, which is entirely consistent with our fiduciary duty. Climate risk is financial risk, and everyone can see it – in unprecedented wildfires, extreme flooding and dangerously hot temperatures,” Lander said.
Lander, who is running for New York City mayor, called out the Trump administration for rolling back environmental rules and US banks for their withdrawal from voluntary climate commitment groups.
New York City’s pension funds have taken a vocal stance on climate change since 2018 and have made efforts to divest their fossil fuel investments. The funds voted to exclude upstream fossil fuel investments in private holdings in 2023, which led to the drop in emissions.
TRS has further pledged to invest US$19bn in climate solutions by 2035, and has already invested $5.9bn. NYCERS has deployed $4.47bn and plans to invest $17bn.
Besides investing, disclosing and divesting, the funds have also committed to engaging with asset managers and companies in their portfolios about being aligned with net-zero targets. The comptroller office highlighted its corporate engagement, including agreement with JPMorgan, Citi and the Royal Bank of Canada on disclosures of their clean energy to fossil fuel energy financing ratios. The pension systems have also pushed for fossil fuel financing disclosures to be included on the AGM ballots of Bank of America, Goldman Sachs and Wells Fargo.
Ben Cushing, director at the Sierra Club, applauded New York City’s efforts, saying it sets a standard for public pensions across the country.
“At a time when corporations and financial institutions are retreating from climate commitments, New York City’s pensions are showing bold leadership. By exceeding their interim emissions reduction targets ahead of schedule and accelerating investments in climate solutions, they’re setting the standard for aligning climate action with fiduciary duty,” he said.
This page was last updated March 31, 2025
Written by
Moriah Costa is the Editor-in-Chief of Green Central Banking and has over a decade of experience writing about banking and finance. She is an award-winning American journalist based in Paris and has written for major international publications, including Reuters, The Guardian, and S&P Global. Having grown up in water-stressed Arizona, she has always had a strong interest in bringing awareness to climate and environmental issues.
