Statement from Comptroller Lander on Decision by Pension Board to Table Action on BlackRock and Fidelity Investment Mandates

 

New York City Comptroller Brad Lander released a statement on the decision by trustees of the New York City Employees’ Retirement System (NYCERS) to table his recommendation to rebid BlackRock’s U.S. public equities index mandates and terminate that of active manager Fidelity following an evaluation of their decarbonization plans.

During today’s monthly investment meeting, Comptroller Lander reiterated his call for these changes to the Systems’ portfolios, and proposed that the trustees vote on these motions. The recommendation to terminate PanAgora’s mandate was removed, as the firm submitted an  enhanced net zero plan which includes engagement with portfolio companies to encourage them to adopt credible net zero plans.

“As BlackRock’s Larry Fink said in 2020, ‘climate risk is financial risk.’ Unfortunately, BlackRock in 2025 is failing to act like it. Unlike the vast majority of the asset managers (47 out of 49) who work for our pension funds, BlackRock has chosen to backtrack on their commitments and they now refuse to conduct proxy engagement with companies where they own a significant share of the stock. As a result, I urged trustees to rebid BlackRock’s U.S. public equities index mandates and terminate that of active manager Fidelity.

“This recommendation followed a rigorous evaluation that found that BlackRock and Fidelity’s decarbonization plans failed to align with NYCERS’ Net Zero Implementation Policy, which was established in 2023, with expectations of public markets managers set out clearly earlier this year. I am pleased to report that following my recommendation last month, PanAgora, one of the three managers I initially recommended terminating, has resubmitted plans reflective of a serious commitment to climate action. Bold, clear-eyed, data-supported action delivers results.

“While I am disappointed in the decision of NYCERS’ trustees to table my recommendation to rebid BlackRock’s mandate today, I hope the trustees will vote to adopt it in the new year, as Comptroller-elect Mark Levine takes office. Issuing a Notice of Search for BlackRock’s mandate, which is set to expire in a year, on December 31, 2026, would give the Systems the opportunity to re-evaluate appropriate managers for these assets, who would generate risk-adjusted market returns, price competitively, and align with the fund’s investment policies, including on climate transition.

“As I leave office, I am extremely proud of the work we have done to address the climate crisis over the past four years. We implemented the boldest net zero plan of any U.S. pension fund; completed the Systems’ divestment from fossil fuel reserve owners; excluded upstream fossil fuel infrastructure; reduced financed emissions by 37% from 2019; scaled up climate solutions investments to over $15 billion; won meaningful disclosures from Citi and JPMorgan; led investor engagement with utility companies to insist on real science-based targets; and now have led the field in clear-eyed engagement with our asset managers. Still, much more is required to address the systemic risks we face. I now hand off the baton to Comptroller-elect Levine, and look forward to him working with New York City’s pension funds continue to lead the way forward on responsible investing.”