Title	Key Dates	Nature of Action	ESG Category	Summary
NY State Comptroller DiNapoli Announces Responsible Workforce Management Policy for Private Equity Investments	Adopted 4/23/2024 Effective 7/17/2024	IPS Revisions	Promote ESG Factors in Investment and/or Proxy Voting Decisions	■ New York State Comptroller Thomas P. DiNapoli, trustee of the New York State Common Retirement Fund (“Fund”), today announced the Fund’s adoption of its Responsible Workforce Management Policy and Principles. As part of the Fund’s investment due diligence of new investments within its $38 billion private equity asset class, the new Policy will require an evaluation of relevant workforce management policies and practices. ■ The CRF shall provide all potential PE Managers with a copy of the Policy and any changes thereto. The due diligence phase of all potential private equity investments will include review and consideration of the workforce management policies and practices of PE Managers. The written investment recommendations of CRF staff with respect to all potential private equity investments will address, along with the evaluation of other relevant investment factors, the PE manager’s workforce management policies and practices, focusing on the risks and standards relevant to the investment under consideration. That analysis will be considered with other investment factors in the investment decision making process. The CRF will also provide this Policy to existing PE Managers of core investments in its private equity portfolio and will engage with them periodically on the Principles. The CRF will communicate any changes to this Policy to its PE Managers. ■ “The Fund is dedicated to championing workforce management best practices because they have the ability to enhance the performance and resilience of portfolio companies and, in turn, our investments,” DiNapoli said. “Our Responsible Workforce Management Policy will ensure our private equity investment managers understand our position clearly. We expect them to support fair treatment of workers throughout their portfolio companies by encouraging adoption of workforce management practices that prioritize workers‘ rights and protections, health and safety, fair compensation, and skills development and training. A diverse, reasonably compensated, and well-trained workforce can deliver higher quality products and services, which in turn can provide a competitive advantage for companies and their investors.”
NY Common Retirement Fund Announces New Measures to Protect State Pension Fund From Climate Risk and Invest in Climate Solutions	Adopted and in effect 2/15/2024	Enforcement / Divestment	Promote Divestment from Certain Industries	■ New York State Common Retirement Fund (NY Common) announced it will restrict investments in eight integrated oil and gas companies, including Exxon Mobile Corp. NY Common will divest from corporate bonds and actively managed public equity holdings in the eight companies totaling approximately $26.8 million. These divestitures are part of NY Common's "broader review of the transition readiness of energy sector investments that face significant climate risk." NY Comptroller Thomas P. DiNapoli, trustee of NY Common, said: “Climate change is an increasingly urgent risk facing all investors, and I am determined to protect the state’s pension fund by keeping it at the forefront of efforts to mitigate risks to our investments. This reduces our fund’s exposure to fossil fuels. Consistent with my fiduciary duty to maximize investment returns for the benefit of our members and retirees, these actions should help accomplish the goals of our Climate Action Plan.
New York City Pension Funds Adopt Implementation Plan to Achieve Net Zero Investment Portfolio By 2040	Adopted and in effect 4/5/2023	IPS Revisions	Promote Divestment from Certain Industries	■The New York City Comptroller, together with trustees of the New York City Employees’ Retirement System (NYCERS) and the Teachers Retirement System (TRS) announced implementation plans to reach their goal of net zero emissions in their investment portfolios by 2040. The Net Zero Implementation Plans encompass four strategies that the pension funds will employ to prudently achieve net zero emissions: (1) Disclose emissions and set interim targets, including measurable goals and benchmarks across all investments and operations, specific interim emissions reduction targets by asset class, and disclosure of Scopes 1, 2, and 3 emissions, which calls for a reduction target of 32% for Scopes 1 and 2 by 2025, of 59% by 2030 for Scopes 1, 2 and 3, and of 100% by 2040. (2) Engage portfolio companies and asset managers to be net zero-aligned. (3) Invest in climate change solutions, such as renewable energy, energy efficiency, pollution prevention, and low-carbon buildings to reach the ultimate goal of $50 billion invested in climate solutions across all five NYC pension funds by 2035. (4) Divest to reduce risk, building on the funds’ historic divestment of fossil fuel reserve owners in public equities by asking all private markets managers to exclude upstream fossil fuel investments. SUBSEQUENT DEVELOPMENTS On May 11, 2023, four participants within the New York City Retirement Systems sued the pension funds claiming their divesting of fossil fuel investments violated their fiduciary duties. "This unlawful decision to elevate unrelated policy goals over the financial health of the plans is flatly inconsistent with the defendants' fiduciary responsibilities, and jeopardizes the retirement security of plan participants and beneficiaries," said the lawsuit filed electronically May 11 in a State Supreme Court in New York City. "It must be enjoined," said the complaint in Wong et al. vs. New York City Employees' Retirement System et al. The lawsuit accuses the three pension funds of violating New York state common law and insurance regulations. Both require "actuarially funded public retirement systems" to follow "stringent duties of loyalty and care," the document said. "Defendants breached those duties by subordinating the retirement security of plan participants to the trustees' pursuit of a 'green' climate agenda." On July 3, 2024, the New York trial court granted the pension plans’ motion to dismiss the litigation. The court agreed with the city’s argument that the plan participant plaintiffs have no legal standing to challenge the divestment decision, because the plans are “defined benefit” pensions. While the city’s pension obligations are funded in the first instance by the plans’ investment portfolios, the retirees’ benefits are ultimately backstopped by city taxpayers in the event the investments fall short. Therefore, the plaintiffs’ pension benefits will by definition not be affected by the fossil fuel divestment decision or the outcome of the litigation, so the plaintiffs could show no alleged injury as is required to have standing to assert claims. The court’s reasoning is directly in line with a 2020 U.S. Supreme Court ruling, which reached the same conclusion in rejecting breach of fiduciary duty claims asserted by defined benefit plan participants under ERISA (the fiduciary duties at issue were very similar to those applicable under New York law). The plaintiffs here were unable to convince the state court that a different result should apply under New York law.
NYSTRS Freezes Investments in Top 20 Oil, Gas and Coal Companies	Adopted and in effect 12/28/2021	Enforcement / Divestment	Promote Divestment from Certain Industries	■Applies to NYSTRS. ■Announces divestment from direct holdings in coal producers and a freeze on further investment in the NYSTRS’s 10 largest holdings in thermal coal companies, 10 largest holdings in oil and gas companies, and oil sands companies.
New York State Pension Fund Sets 2040 Net Zero Carbon Emissions Target	Adopted and in effect 12/9/2020	Enforcement / Divestment	Promote ESG Factors in Investment and/or Proxy Voting Decisions	■Applies to the New York State Common Retirement Fund (Fund). ■Calls for the Fund to transition its portfolio to net zero greenhouse gas emissions by 2040 by reviewing energy-sector investments, assessing transition readiness and climate-related investment risk, and divesting from companies that fail to meet minimum standards
Responsible Contractor Policies for the New York City Pension Funds	Adopted and in effect 5/23/2017	IPS Revisions	Promote ESG Factors in Investment and/or Proxy Voting Decisions	■ Each of the NYC Pension Funds has adopted a Responsible Contractor Policy (“the Policy”) which is designed to ensure that contractors, investors, managers, consultants, or other participants selected by the respective Pension Fund take prudent and careful action in accordance with the Policy. The NYC Pension Funds support and encourage fair wages and fair benefits for workers employed by their managers, contractors and subcontractors, subject to fiduciary principles concerning duties of loyalty and prudence, both of which further require competitive returns on the Pension Funds' real estate and infrastructure investments. ■ Use of this Policy also provides assurance that there is sufficient flexibility in controlling investment risks and returns while using responsible contractors. The Pension Funds have a deep interest in the condition of workers employed by their managers, contractors and subcontractors. ■ The Pension Funds endorse small business development, market competition and control of operating costs. Consistent with the ideals espoused by labor unions and other advocates for workers’ rights, the Pension Funds believe that a diverse, adequately compensated, and trained workforce delivers a higher quality product and service, thereby providing the Retirement System with a better opportunity for long-term security of its investments, along with a better opportunity for long-term growth and investment return. Adequate compensation includes fair wages and benefits, including healthcare and retirement plans. The Retirement System encourages contract issuers to provide unionized contractors with the opportunity to bid on projects.

Title	Key Dates	Nature of Action	ESG Category	Summary
SB9758: Establishes the "Climate Safe and Responsible Bank Procurement Act"	Introduced 5/29/2024	Legislation	Promote ESG Factors in Investment and/or Proxy Voting Decisions	■ Requires the state procurement council to establish by December 31, 2025, guidance requiring state agencies to consider specific ESG criteria when purchasing banking services, including whether a bank (1) discloses its greenhouse gas emissions and its clean energy supply financing ratio, (2) has policies that bar support for coal projects and cover the transition away from new fossil fuel projects and divestment of existing fossil fuel projects, and (3) has a plan for achieving net zero carbon emissions by 2050. ■ Requires state agencies contracting for underwriting services in bond issuances or refinancing to consider the above ESG criteria when purchasing services, and forbids such contracts with banks that are not fully compliant with the state's greenhouse gas emissions reporting protocol by 2026.
S1953: Requiring SUNY and CUNY Fossil Fuel Divestment	Introduced 1/9/2024	Legislation	Promote Divestment from Certain Industries	■Beginning July 1, 2024, the SUNY and CUNY board of trustees may no longer invest in any of the 200 largest publicly-traded fossil fuel companies based on the carbon content in oil, gas, and coal. ■Before January 1, 2028, the board must divest from the same publicly-traded companies, except divestment from companies engaged in coal mining or extraction must be completed within one year of the bill’s effective date. ■ Originally introduced in 2023 as “S1953: Requiring SUNY and CUNY Fossil Fuel Divestment” but failed to pass during that legislative session. Carried over to 2024 legislative session.
A4090/S6472: Prohibiting ESG Criteria by the Comptroller	Introduced 1/3/2024	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■Prohibits the comptroller from using ESG criteria as a screening method for selecting companies and funds to invest the state pension fund in. ■ Originally introduced in 2023 as “A4090/S6472: Prohibiting ESG Criteria by the Comptroller” but failed to pass during that legislative session. Carried over to 2024 legislative session.
SB899/A1101: Establishes the Teachers’ Fossil Fuel Divestment Act	Introduced 1/3/2024	Legislation	Promote Divestment from Certain Industries	■Within six months of the effective date, the New York State Teachers’ Retirement System (NYSTRS) board will create an “exclusion list” of all coal and oil and gas producers whose assets NYSTRS has invested. The list shall be updated at least every two years, and a company must submit “clear and convincing evidence” that they are no longer a coal and oil and gas producer to be removed from the list. ■Starting one year after the effective date, NYSTRS will cease new investments in companies on the exclusion list and will divest as follows: o Within two years: divest from oil and gas producers; o Within one year: divest from coal producers; o Within five years: divest from private equity and private debt investments ■NYSTRS will have the discretion to divest from other entities it “in good faith believes are directly or indirectly financing” coal and oil and gas producers “regardless of whether such entity otherwise meets the criteria” in the legislation. ■Does not include index funds if the fund does not have in excess of one percent of its assets directly or indirectly invested in coal and oil and gas producers. ■ Originally introduced in 2023 as “SB899/A1101: Establishes the Teachers’ Fossil Fuel Divestment Act” but failed to pass during that legislative session. Carried over to 2024 legislative session.
S5437:Requires certain corporations to annually prepare a climate-related financial risk report for submission to the secretary of state and to make such report available to the public	Introduced in 2023, carried over to 2024	Legislation	Promote ESG Factors in Investment and/or Proxy Voting Decisions	■Requires certain corporations authorized to operate in the state and subject to the supervision of the department of financial services that had annual gross revenues of at least five hundred million dollars ($500,000,000) in the prior calendar year to annually prepare a climate-related financial risk report for submission to the secretary of state and to make such report available to the public.

Legislation/Guidance in Effect

Pending Legislation

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