New York City Comptroller Mark Levine has released the Fiscal Year 2025 Annual Climate Reports for three of the city’s major public pension systems, revealing that the funds have dramatically outpaced their carbon reduction targets while maintaining robust financial performance.
Between 2019 and 2025, the Teachers’ Retirement System (TRS), Employees’ Retirement System (NYCERS), and Board of Education Retirement System (BERS) achieved a weighted average reduction of 48.13% in Scope 1 and 2 greenhouse gas emissions. This significant decarbonisation occurred alongside a net return of 10.3% for the five public pension systems in FY25.
“The progress laid out in this report is a reflection of the important role that reducing emissions exposure, investing in the clean energy transition, and holding companies accountable plays in smart pension management,” said Comptroller Levine.
The three systems—TRS, NYCERS, and BERS—surpassed their 2025 interim reduction goals for public equity and corporate bond portfolios:
- TRS: Achieved a 49% reduction (Target: 32%)
- NYCERS: Achieved a 46.68% reduction (Target: 32%)
- BERS: Achieved a 45.72% reduction (Target: 22%)
The report also highlights a shift in asset management expectations. Virtually all public market managers for the three systems have now agreed to align with net-zero goals or science-based targets. Furthermore, all private market managers receiving fund commitments since last year have submitted formal plans to align with the systems’ net-zero ambitions.
The Comptroller’s Bureau of Asset Management (BAM) has intensified its oversight, updating due diligence procedures in January 2026 to include specific assessments of climate-related value creation and physical resilience.
Key engagement highlights from the 2025 report include:
- Banking accountability: Re-filing shareholder proposals at major banks—including Goldman Sachs and Wells Fargo—to request “energy supply ratios” that measure clean energy financing versus fossil fuels.
- Emerging tech risks: Initiating engagement with portfolio companies regarding the environmental impact of artificial intelligence data centres, citing concerns over rising carbon emissions and electricity costs.
- Utility sector reform: Convening industry roundtables to establish frameworks for emissions reduction targets within the utility sector.
New York City’s pension systems continue to ramp up direct investments in climate change solutions. As of 30 June 2025, the combined investment and commitment from TRS, NYCERS, and BERS into climate solutions reached over $13.4 billion.
The Comptroller’s Office confirmed that it remains focused on identifying further opportunities to increase these investments in a manner consistent with its fiduciary duty to retirees.
