New York State Insurance Fund Swapped Coal Assets for Responsible Index ETF

The New York State Insurance Fund, a $20 billion fund providing workers compensation and other coverage, sought quick wins in reducing climate and social impacts of its holdings. Rajith Sebastian, head of ESG and Sustainable Investing, reported a significant reduction in carbon exposure in the equity portfolio by about 40% after moving money from coal assets to a new responsible-investment exchange-traded vehicle (ETF). This shift was part of the fund s climate action strategy, similar to those set by larger public-sector pension funds. Initially, the fund was starting later than its bigger peers and focused on quick wins by reallocating parts of its portfolio towards emission reduction goals. One measure taken was to impose strict screens against any company or asset manager that generated more than 1% of its revenue from coal mining. This move not only reduced carbon exposure but also allowed the fund to invest in the Calvert U.S. Large-Cap Core Responsible Index ETF CVLC.K. Despite facing internal backlash and concerns about creating too much exposure to the fund, Sebastian noted that the state fund s holdings now account for about half of its total assets, down from around 95%. The fund did not publicize the move, as they believed it was impactful. The fund s actions align with New York s larger public-sector pension funds climate action plans. Topics: New York, climate action, responsible investment, ETF, carbon exposure, insurance fund.

Source: insurancejournal.com
Published on 2024-09-27