Message from the State Comptroller

When the first Earth Day was celebrated on April 22, 1970, an estimated 20 million people came together across the country to learn about the environment and to call for more protections. Later that year, the US Environmental Protection Agency was founded. While there continues to be pollution issues, EPA actions have led to tangible results like cleaner rivers and meaningful advancements in addressing problems such as acid rain.

Significant proposed reductions in federal staffing and programs threaten safeguards for our air and water and may hamper our ability to monitor and respond to extreme weather, and leave communities vulnerable to toxic air pollution.

Looming federal program cuts and regulatory rollbacks make the job of ensuring the effectiveness of New York's environmental protection programs all the more important. Over the last year, my Office has audited the State’s progress in meeting its climate goals, and efforts to make the State more resilient to climate change, and examined the implementation of open space preservation funds on Long Island and drinking water systems in upstate New York.

As Trustee of the New York State Common Retirement Fund, I am actively addressing climate change related investment risks through our corporate governance initiatives and capitalizing on the growth of renewable energy and climate solutions via our Sustainable Investment and Climate Solutions Program (SICS).

I am pleased to share an overview of our work and highlight our ongoing commitment to addressing environmental issues. I hope you will find it informative.

Clean Energy

Protecting the Pension Fund through Corporate Governance
The New York State Common Retirement Fund remains one of the largest and best-managed public pension plans in the nation. The Fund faces threats from climate change, including extreme weather, long-term seasonal changes, and shifting consumer preferences, all of which impact the economy and financial markets. To safeguard the Fund's investments, Comptroller DiNapoli employs an active corporate governance strategy to encourage companies to address climate-related investment risks and capitalize on opportunities in the transition to a low-carbon economy. This includes direct engagement with company leadership, the filing of shareholder resolutions, investments in climate-focused solutions that meet the Fund's stringent criteria, and proxy voting that champions strong climate policies and board expertise. These strategies are an integral component of protecting the Fund and ensuring retirement security for the 1.2 million members, retirees, and beneficiaries of the New York State and Local Retirement System.
Since April 2024, the Fund reached climate-related agreements with five portfolio companies, made significant new investments through its Sustainable Investments and Climate Solutions program, and updated its Proxy Voting Guidelines to withhold support from directors responsible for climate risk oversight when the company fails to disclose and appropriately manage climate risks. In 2024, the Fund voted against 1,900 directors at 600 portfolio companies for failing to address climate and other environmental financial risks.
The Fund filed three shareholder resolutions addressing climate change risks faced by companies for 2025. The Fund was able to reach an agreement with the three companies (United Parcel Service, Inc., Dollar General Corp., and Hyatt Hotels Corp.) to provide more information how they will address transitioning to a clean energy economy.

Comptroller DiNapoli and Reverend Kristen Spaulding, Vice President of Ceres Investor Network, partake in a fireside chat during Ceres Main Stage Climate Week Event: From Ambition to Action: Achieving Climate Goals with Transparency and Advocacy.

Accelerating Investments in Sustainability and Climate Solutions

To date, the Fund has deployed over $26.5 billion, toward its goal of $40 billion by 2035, to specific investment opportunities in the Sustainable Investments and Climate Solutions (SICS) Program. The Fund's commitments to SICS span asset classes including private equity, public equity strategies, green bonds, clean and green infrastructure funds, as well as Leadership in Energy and Environmental Design (LEED) certified real estate funds.

Recent investments through this program include:

$2 billion to the FTSE Russell TPI 1000 Climate Transition Index, an index fund that examines companies’ fossil fuel reserves, carbon emissions, green revenues, management quality and carbon performance.

$150 million to the Vision Ridge Partners Sustainable Asset Fund IV, a fund targeting investments focusing on climate mitigation and adaptation across energy, transportation, and agriculture.

$250 million to the Oaktree Power Opportunities Fund VII, a fund targeting investments supporting infrastructure, including electric power, solar, and water systems.

Mindy Lubber, CEO/President of Ceres, Comptroller DiNapoli, and Gina McCarthy, First White House National Climate Advisor and former EPA Administrator at the Ceres Main Stage Climate Week Event: From Ambition to Action: Achieving Climate Goals with Transparency and Advocacy.

Strengthening Our Rural Communities Together

In November 2024, Comptroller DiNapoli hosted two Rural Roundtables in Geneva and Middletown—bringing together farmers, agricultural experts and community leaders to discuss key issues facing rural communities. Participants explored strategies for supporting family farms and strengthening local food systems, and learned about Comptroller DiNapoli’s November 2024 Agriculture report, which spotlighted the growth and challenges happening on New York’s farms.

Audits and Reports Drive Accountability in Environmental Protection

Environmental audits and reports play a crucial role in evaluating the effectiveness of governmental environmental policies and initiatives. These assessments, conducted by the Comptroller’s divisions of State Government Accountability, Local Government and School Accountability, and the Office of Budget and Policy Analysis, examine progress toward established goals, preparedness for environmental challenges, and the implementation of specific protection efforts.