Geneva, 14 November: The New York City Employees’ Retirement System (NYCERS), the largest municipal public employee retirement system in the United States, has joined the UN-convened Net-Zero Asset Owner Alliance (NZAOA).
This move marks NYCERS’s commitment to addressing climate risk change and underscores the critical role investors play in mitigating climate risks. Joining NZAOA is a strategic decision that highlights NYCERS’s leadership in promoting sustainable investment strategies.
“This significant step builds on NYCERS’s history of climate leadership, underscoring our responsibility to confront the clear and present dangers of climate change,” said New York City Comptroller Brad Lander.
“Climate risk is financial risk, and by joining the Net-Zero Asset Owner Alliance, we reinforce our commitment to sustainable investments that protect our retirees’ futures while pushing for a resilient, net-zero economy.”
The Alliance members have set ambitious targets to reduce portfolio emissions in alignment with the 1.5°C Paris Agreement goal. The Alliance members have been delivering on their commitments, as evidenced in NZAOA’s fourth Progress Report—they have, on average, reduced absolute financed emissions by at least 6 per cent annually.
Günther Thallinger, Board Member, Allianz SE, and Chair, NZAOA, states:
“For a global organisation like NZAOA, having a robust presence in every region is crucial to our mission. We are thrilled to welcome NYCERS as our newest North American member. This strategic partnership not only enhances our footprint in North America but also reinforces our commitment to fostering global collaboration and excellence.”
NYCERS manages nearly $89 billion in assets and serves over 350,000 current city workers and retirees. In 2021, NYCERS voted to divest from fossil fuel reserve owners in their public equities and corporate bonds portfolio (completed in 2022) and voted to exclude upstream fossil fuel investments (i.e., exploration and extraction) in their private market investments in 2023. NYCERS also voted in 2021 to adopt a Net Zero by 2040 aspirational goal and adopted a Net Zero Implementation Plan in February 2023.
Among US-based members, NYCERS joins CalPERS, Wespath, the David Rockefeller Fund, Jessie Smith Noyes Foundation, and The Russell Family Foundation.
About the UN-convened Net-Zero Asset Owner Alliance
The UN-convened Net-Zero Asset Owner Alliance is a member-led initiative comprising 89 institutional investors with US$9.5 trillion in assets under management. These investors are committed to individually aligning their investment portfolios with the Paris Agreement’s goal of achieving net-zero GHG emissions by 2050. The Alliance, convened by UNEP FI and PRI, with support from WWF and Global Optimism, was the first in the financial industry to define intermediate targets and provide annual progress reports