NY Pension Fund Prioritizes Climate Over Big Oil Profits: Restricts Investments In 8 Companies, Including ExxonMobil
Portfolio Pulse from Lekha Gupta
The New York State Common Retirement Fund is restricting investments in eight oil and gas companies, including Exxon Mobil Corp (NYSE:XOM), due to climate change concerns. The fund plans to divest its corporate bonds and actively manage public equity holdings in these companies, deemed not transition-ready for a sustainable future. The total value of these holdings is approximately $26.8 million, with around $25 million in Exxon shares to be divested, while maintaining about $500 million in other Exxon holdings in passive index funds.
February 16, 2024 | 10:54 am
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Exxon Mobil Corp faces divestment from the New York State Common Retirement Fund due to climate change concerns, with approximately $25 million in shares to be divested.
The decision to divest from Exxon Mobil Corp reflects growing climate change concerns and the fund's commitment to sustainable investing. This move could signal to investors the increasing financial risks associated with companies not prepared for the transition to a low-carbon economy, potentially affecting Exxon's stock price in the short term.
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