DiNapoli, Stringer to SEC: Lean on Fossel Fuel Companies

New York State and New York City comptrollers Thomas DiNapoli and Scott Stringer, respectively, called on the Securities and Exchange Commission to compel fossil fuel industry companies— by enforcement or other action —to better disclose material risks related to climate change.

DiNapoli, trustee of the New York State Common Retirement Fund, and Stringer, chief investment advisor of the New York City Retirement Systems, manage in excess of $330 billion in assets for more than 1.7 million current and retired state, city, and municipal government employees and their beneficiaries.

"The silence of fossil fuel companies on the risks they face from climate change is a red flag for investors," Stringer said in an April 17 statement. "The SEC has both the authority and the responsibility to require fossil fuel companies to disclose material risks related to climate change, including potential physical impacts and regulatory responses."

In their letter to Commissioner Mary Jo White, DiNapoli and Stringer said they expect continued volatility in the fossil fuel industry that SEC action now "will ensure that investors have the benefit of company analysis of the potential impact of large and growing risks on future company performance."

The New York State Common Retirement Fund is participating in a study, conducted by Mercer LLC with other global institutional investors, to study the impact that various climate change scenarios could have on investments. The study will help the fund manage its asset allocation to meet risks.