Actually good, major climate news: today New York City is announcing its public pensions are fully divesting out of the fossil fuel industry and into renewables & climate - a massive shift of about $50 billion.
This move is led by NYC workers. Here’s why this is a big deal.
(previous tweet)
Pension funds are massive pools of money that fund retirement for teachers, city workers, and other public employees.
These funds invest throughout our economy, & the sheer size of pension plans in the US economy (~$5.5 trillion according to @PensionDialog) make them powerful.
I sit on the Financial Services Cmte & often see how Wall St leverages risky &/or unpopular investments onto public pensions, taking bets and setting up workers to hold the bag.
As fossil fuels sink in popularity, pension funds have been an important source for fossil fuel $.
That’s where workers come in to spark change. By demanding their retirements be divested of fossil fuels, workers and voters are precipitating large shifts of $ out of big oil, gas,etc.
That amps up pressure & leaves companies like Exxon w/ fewer places to get fossil fuel money.
NYC is home to some of the largest pensions in the country. If other cities & states join,we’re talking major shifts for climate.
And it’s not only pensions. Univ endowments can divest, too.
Want to help? Ask your school or pension to divest from fossil fuels & into climate
And while it’s important to note that market-based approaches alone will NOT solve the climate crisis (in fact they largely created it to begin w/), divestment mvmts help create the conditions & pressure necessary for even larger leaps.
So there’s your good news of the day
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Kudos to @NYCComptroller for crunching the numbers and laying out the plan and @NYCMayorsOffice for executing on it