New York City's pension funds now require their asset managers to submit real net-zero plans by June 30 or risk losing their business entirely, reported Fast Company.
This covers nearly $300 billion worth of investments managed by hundreds of firms, including BlackRock, which handles almost $60 billion of the city's pension money.
The new rules mean asset managers must show clear plans to reduce their carbon footprint across all business operations. If their climate strategies don't meet the city's standards, they'll face a "rebid" process where the pension funds could move their money to cleaner competitors.
Clean energy investments outperform their dirty energy counterparts, making them the more intelligent choice for investors who prioritize long-term growth.
The numbers back this up: since 2019, NYC's pension system has already cut its pollution by 37% while maintaining strong returns.
The move creates jobs and economic opportunities in growing clean sectors while reducing exposure to stranded dirty energy assets. Thousands of oil and gas investments risk becoming unprofitable as climate impacts make them unviable years ahead of schedule.
This strategy reaches far wider than simple divestment by pushing entire financial firms to clean up their acts. When pension funds demand climate action, it creates a ripple effect that can change the industry.
Despite short-term market fluctuations, the long-term momentum toward a clean economy remains strong and backed by economic logic. Investors who position themselves in clean sectors now are setting themselves up for tomorrow's economic opportunities.
The strategy promises substantial profit-making potential for investors who make the switch early. Clean energy sectors are creating thousands of new jobs while providing economic resilience that traditional energy investments can't match.
"What we're doing is getting the New York City pension funds to use their buying power to shift money from dirtier money managers like BlackRock, who are bad on climate, to cleaner money managers," said Pete Sikora, climate campaigns director with New York Communities for Change.
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New York City Comptroller Brad Lander made the city's position clear: "We will not retreat from our strong climate action, a position that remains consistent with our fiduciary duty. Climate risk is financial risk."
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