The New York State Common Retirement Fund is evaluating 42 publicly traded shale oil and gas companies to determine if they are prepared for the transition to a low-carbon economy.

New York State Comptroller Thomas DiNapoli has also announced that the fund has restricted investments in five more coal producers, adding those companies to the list of 22 that the fund divested from in 2020.

“A low-carbon economy is already becoming a reality and companies that aren’t prepared for it could pay a heavy financial cost,” DiNapoli said. “Shale oil and gas companies face significant economic, environmental and regulatory challenges. We will carefully review these companies and may restrict investments in those that do not have viable plans to adapt.

The actions come as part of DiNapoli’s comprehensive Climate Action Plan to mitigate investment risks posed by climate change and ultimately transition the fund’s investment portfolio to net-zero greenhouse gas emissions by 2040.

Shale oil and gas companies under review are those that derive over 10 per cent of their revenue from crude oil and gas production from shale. Included on the list are major energy companies including Marathon Oil Corp., ConocoPhillips and Hess Corp.

DiNapoli also announced the Fund would restrict investments in the following coal producers: New Hope, PT Indo Tambangraya Megah, Semirara Mining and Power, Shanxi Coking Coal Energy Group and Whitehaven Coal.
The fund will not directly purchase or directly hold debt or equity securities, or invest through an actively managed account or vehicle, in these coal companies.

The actions follow DiNapoli’s 2020 review of coal companies that led to divestment from 22 firms that failed to demonstrate transition readiness. The Fund annually reviews the universe of companies that derive 10 per cent of their revenues from thermal coal mining and these additional companies did not demonstrate transition readiness

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