Climate Change Strategies
Climate risk is one of the greatest threats to long-term investments. Comptroller DiNapoli is addressing climate-related investment risk by seeking sustainable investments and persuading corporations in the Fund's portfolio to adopt better environmental policies.
Long-Term Business Models
In 2017, DiNapoli leveraged the Fund’s position as a major shareholder to compel large energy companies, including ExxonMobil, to explain how the Paris Agreement’s global effort to lower carbon emissions and build a cleaner economy might impact business and how they might adapt. ExxonMobil’s agreement to increase this disclosure of climate change’s impact came after more than 62% of shareholders voted in favor of DiNapoli’s request at the company’s annual meeting. Duke Energy and PPL, a large Pennsylvania utility, also adopted the request after their shareholders showed strong support for DiNapoli’s request.

In the fall and winter of 2017, DiNapoli continued to push portfolio companies to increase disclosure of the risks they face from climate change, to lower greenhouse gas emissions and to take other steps to mitigate the risk that climate change presents. Pending any early agreements, those proposals will be voted on at the companies' annual meetings in the spring of 2018.
Low-Carbon Index Fund
DiNapoli created a $2 billion index fund that weights investments in domestic equities based on their carbon emissions, while closely tracking the performance of its benchmark, the Russell 1000. The index reduces investments in the worst carbon emitting corporations and shifts them to lower emitters. Launched in Jan. 2016, the index was designed to be easily expanded as performance dictates.
Renewable Energy Sources
DiNapoli has reached agreements with major corporations to increase their use of renewable energies. Businesses that commit to diverse renewable energy sources are protecting long-term value by giving themselves energy options in times of volatile fossil fuel prices.
Reduction of GHG Emissions
DiNapoli reached agreements with companies to set measurable goals for lowering their greenhouse gas (GHG) emissions in accordance with the United Nations findings that stabilizing global temperatures will require a 55% reduction in GHG emissions by 2050.
Sustainable Soy and Palm Oil
DiNapoli persuaded companies including Dunkin’ Donuts, ConAgra and Archer Daniels Midland to use only palm oil that is certified to have been sustainably harvested. Palm oil is found in numerous food products but its production is one of the leading causes of deforestation, a major contributor to climate change.