{"id":1977035,"date":"2023-07-19T06:37:02","date_gmt":"2023-07-19T10:37:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-city-clamps-down-on-fossil-fuels-via-esg-in-defiance-of-national-gop-blowback\/"},"modified":"2023-07-19T06:40:14","modified_gmt":"2023-07-19T10:40:14","slug":"new-york-city-clamps-down-on-fossil-fuels-via-esg-in-defiance-of-national-gop-blowback","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-city-clamps-down-on-fossil-fuels-via-esg-in-defiance-of-national-gop-blowback\/","title":{"rendered":"NYC tackles fossil fuels with ESG despite GOP opposition."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-york-city-clamps-down-on-fossil-fuels-via-esg-in-defiance-of-national-gop-blowback%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1977035&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>New York\u2062 City Takes\u200b Bold Steps to Exclude Fossil Fuel \u2064Companies from Pension Funds<\/h2>\n<p>New \u200bYork\u2063 City is leading the charge\u2064 to exclude fossil\u200d fuel\u2063 companies from \u2063pension\u200d funds,\u2064 despite\u2064 pushback to\u2062 ESG from \u2063Republicans \u200cat the state and national\u200c levels.<\/p>\n<p>The Big Apple \u2064has, \u200clargely across the\u2063 board, \u200cbeen working to cut\u2064 greenhouse gas emissions in \u2062an effort to curtail climate\u2063 change. \u2062But \u200bit stands apart in its\u2064 ambitious embrace of environmental, social, and governance \u200binvestment principles, collectively known as ESG.<\/p>\n<h3>Proponents and Critics \u2063Clash \u200bOver ESG Investing<\/h3>\n<p>Proponents of ESG \u200dinvesting, such \u200bas \u2062New York City\u200c Comptroller Brad \u2064Lander, who oversees \u200cthe city\u2019s\u2062 pension\u200c plans, see\u2064 ESG \u200cinvestment\u2062 strategies,\u200d for example, moving away from investments in the fossil fuel \u2064industry, as compatible\u2063 with \u2062fiduciary\u2062 duty, \u200cas they contend \u2064divestments help \u2064safeguard plan \u200bbeneficiaries\u2064 from the longer-term financial\u2062 risks associated with disruption \u200dfrom\u200d climate \u200cchange.<\/p>\n<p>But critics, like \u200bRepublican attorneys\u200c general and \u2063state treasurers across the country, see\u200c ESG \u2064investing as a\u2064 breach of fiduciary duty. They contend that\u200c the ESG push is a\u2063 way for liberal climate goals to \u200dbe injected into the private market\u200d without \u2062the \u2064use of\u200c the \u200cballot\u2062 box, \u2063and that\u200b fund managers that\u2062 do so are violating their duty to get beneficiaries the best returns on \u2062investment.<\/p>\n<h3>Lawsuit Challenges Fossil\u2064 Fuel Divestment Decision<\/h3>\n<p>Now the board of trustees of three different pension systems \u2064is facing a lawsuit over the \u20632021 decision\u2063 for\u2063 three funds to divest\u2063 from fossil fuels. The lawsuit \u200dargues that \u200bthe New\u200b York \u200cCity Employees\u2019 Retirement System, the \u2062Teachers\u2019 Retirement System, and the Board of Education Retirement System are all\u200c in \u200bviolation of their fiduciary duties by committing to having net-zero emissions in their portfolios by 2040.<\/p>\n<p>Lander,\u2062 a Democrat, is not buckling to \u2064the\u2062 pressure \u2063in what could be \u2063a\u2062 test\u200d case for\u200b further moves to\u200b forward\u2063 ESG investing \u200band divestment from the fossil fuel\u2064 space \u200bin municipalities across the country. He contends \u2062that critics on the Right \u200dhave made ESG \u200da \u2063political\u2063 hot\u200b potato and that\u2063 the move toward ESG \u200binvesting shouldn\u2019t be an inherently political matter.<\/p>\n<p>\u201cI wish I could\u200c start from\u2062 square\u2063 one, when the\u200b field\u2063 hadn\u2019t already been polarized,\u201d he \u2062told Bloomberg\u2063 Law last month. \u201cI \u2062wish \u2062you\u200b could\u2063 start from a place of saying, \u2018Let me talk \u2064to you about what the \u2063pension obligations are \u200bthat \u200drun \u200cout for decades.\u2019\u201d<\/p>\n<p>The lawsuit, which \u200bwas \u200dfiled in May by a group\u200b of public\u200d employees, seeks unspecified \u2063damages,\u200d including reimbursement of\u200d losses from the divestment.<\/p>\n<p>The lawsuit claims \u2062that \u2062the defendants breached their fiduciary duties\u2064 and abused control over their plan assets by divesting some \u200b$4 billion in\u200d holdings in companies involved \u200cin \u2063the extraction of\u2064 fossil fuels,\u200d something that\u2063 the complaint characterized \u2064as an\u200c \u201cineffectual \u2063gesture to address\u2063 climate \u200cchange.<\/p>\n<p>\u201cThis unlawful\u200c decision \u200dto elevate unrelated policy goals over the\u2064 financial health of the Plans is flatly inconsistent with the\u2063 Defendants\u2019\u200d fiduciary responsibilities, and jeopardizes the retirement security\u200b of Plan participants \u2062and beneficiaries,\u201d\u2063 the \u2062complaint reads.<\/p>\n<p>Lander has argued that some of the pushback is a\u2062 misunderstanding about\u200c the \u200cmachinations in \u2063play. \u200dLander \u2063pointed \u200cout\u2062 last month that he doesn\u2019t make\u2063 direct investments, but that each \u2062pension fund\u2019s\u200d trustees and asset managers do. Lander said he just\u200b wants ESG to be\u2064 a \u2064way of measuring risk.<\/p>\n<p>\u201cEveryone \u2062who\u200d manages a large pool\u2063 of \u2064money recognizes that\u2064 it\u2019s important to take <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-were-on-a-mission-advocacy-groups-behind-push-to-save-womens-sports-campaign-against-trans-surgeries-for-minors\/\" title=\"EXCLUSIVE: \u2018We\u2019re On A Mission\u2019: Advocacy Groups Behind Push To Save Women\u2019s Sports Campaign Against Trans Surgeries For Minors\">long-term risks<\/a> into account,\u201d\u2062 he\u200b said.\u200b \u201cWe take environmental, social,\u200c and governance concerns very seriously in the context of all our investments\u2063 across our portfolio,\u2063 because that is not only consistent with\u2062 fiduciary duty, it\u2019s\u2063 required by\u200c fiduciary \u200cduty.\u201d<\/p>\n<p>Will Hild,\u2064 the executive\u200d director\u200d of \u200bthe conservative \u200bgroup Consumers\u2019 \u2063Research, which has been a\u2062 major critic of\u200b ESG, said that the\u2064 lawsuit\u200b will be \u200dwatched\u200b closely given the broader\u200d implications of\u200d ESG and how municipalities handle these \u2062sorts \u200dof \u2062issues.<\/p>\n<p>\u201cI think\u2063 that \u200bjust \u200dthe\u200d filing \u2063of \u2064this case is going to send shockwaves through \u200dpublic officials \u200cwho \u200chave been politicizing \u2064and weaponizing\u200d their states\u200d and \u200clocalities&#8217; \u2064pension\u2064 funds in\u2063 violation of the \u2063law,\u201d he told the Washington \u2063Examiner.<\/p>\n<p>Hild also said\u2064 that the discovery is going \u200bto have \u2063big\u200d implications \u201cbecause it is going to force the comptroller to\u2063 admit the myriad ways they have been colluding with other players, \u2062other pension funds, other\u2064 major asset\u200d managers \u2063in ways\u2063 that are completely\u2062 outside of \u2062their legal\u2063 authority.\u201d<\/p>\n<p>The fight over the \u2063divestment and integration of ESG\u200c in New \u2063York City \u200cis\u2062 a microcosm of \u200cthe \u2062fight\u200b being waged \u2062in states\u200b across\u200b the \u2062country and \u2063at\u2064 the \u200dnational\u200d level.<\/p>\n<p>Several\u200b states, \u2063including West Virginia, have made moves \u2063to \u200cprotect\u200b pension\u200d funds from\u2063 ESG. For example, Florida\u200b announced earlier this \u200cyear it\u200c is <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-city-clamps-down-on-fossil-fuels-via-esg-in-defiance-of-national-gop-blowback\/\" title=\"NYC tackles fossil fuels with ESG despite GOP opposition.\">prohibiting state-run fund\u200b managers<\/a> from \u200dconsidering ESG factors \u2064when \u200bmaking investments. \u2062Some \u200bstates have also announced big\u2064 divestments from money \u200dmanagers such as\u2064 BlackRock.<\/p>\n<p>For\u2064 instance,\u200b Missouri\u2063 announced \u200clast \u200cyear\u2064 that\u2063 it would yank some $500\u200b million in pension funds from BlackRock, joining \u2064other Republican-led states divesting from the firm, which \u200dhas \u200cbecome a top target \u2063of\u200d the GOP, over\u2063 its\u200d commitment to \u2062ESG \u200cgoals in investing.<\/p>\n<p>\u201cFiduciary duty\u2064 must remain\u2062 the \u200dtop priority\u200d for \u2063investment \u200bmanagers, a duty\u200b some \u2062of them\u2064 have abdicated in\u200c favor of forcing a left-wing social and political\u200b agenda that \u2062has\u200b failed to\u200c succeed legislatively on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stunning-reddit-shuts-down-wallstreetbets-subgroup-blames-racism-and-hate-speech-after-rookie-investors-in-general-public-make-money-causing-hedge-funds-to-go-bust\/\" title=\"STUNNING: Reddit Shuts Down WallStreetBets Subgroup \u2014 Blames Racism and Hate Speech \u2014 After Rookie Investors in General Public Make Money Causing Hedge Funds to Go Bust\">publicly traded companies<\/a>,\u201d\u2064 said\u200d Missouri State\u200d Treasurer Scott \u200cFitzpatrick \u2064at\u200c the\u200d time.<\/p>\n<p>ESG, and pushback against \u2062it, is \u2063getting big attention at the\u200c national level too. Last week, Republicans \u200dheld a series of congressional\u2064 hearings to \u2062emphasize \u200dtheir opposition to\u200b the federal government\u2019s embrace of ESG policy and spark conversation surrounding\u200b the \u200btopic.<\/p>\n<p>A \u2064big\u200c part of the\u200c ESG blitz \u2062on Capitol\u200d Hill was\u200c because of how hard the \u2062Biden administration is pushing ESG \u200bthrough\u200c federal agencies and the rulemaking process, \u200baccording to Rep. Bryan \u200dSteil (R-WI), a member\u200d of\u2063 the House Financial Services Committee.<\/p>\n<p>\u201cI think\u2062 it\u2019s a \u200d<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-gop-looks-to-get-in-on-anti-esg-action-with-blitz-of-hearings\/\" title=\"House Republicans aim to join the anti-ESG movement through a series of hearings.\">pretty rational understanding<\/a> to realize that not only are the American people pushing back, but members of\u200b Congress and me, in particular,\u200c have \u2063been bird-dogging this for some time,\u201d \u2063Steil told \u2064the Washington \u2063Examiner during an\u200b interview.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/energy\/new-york-city-pension-funds-fossil-fuel-divestment-lawsuit\">CLICK\u2063 HERE TO READ \u2064MORE FROM THE\u2064 WASHINGTON\u200d EXAMINER<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>efforts to divest from fossil fuel companies in pension funds, despite opposition from Republicans. New York City is committed to reducing greenhouse gas emissions and taking action against climate change. Its proactive stance sets it apart from others in the fight against fossil fuels.<\/p>\n","protected":false},"author":1,"featured_media":1977036,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-1977035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1977035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1977035"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1977035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1977036"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1977035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1977035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1977035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}