Dinapoli plans to divest from oil sands producers
Comptroller wants to avoid investments that add to gas emissions
State Comptroller Tom Dinapoli on Monday said the state’s $247.7 billion pension fund would be divesting from a half-dozen oil sands companies in keeping with a push to avoid investments that are contributing to greenhouses gases.
“As nations around the world become increasingly serious about addressing the threat of climate change and as market forces drive a low-carbon economic transition, we need to make sure our investments line up with this reality,” Dinapoli said in announcing the move. “Companies responsible for large greenhouse gas emissions like those in this industry pose significant risks for investors.”
The fund will divest approximately $7 million in holdings from the following oil sands producers: Imperial Oil Ltd.,canadian Natural Resources Ltd., Husky Energy Inc., MEG Energy Corp., Cenovus Energy Inc., and Japan Petroleum Exploration Ltd.
Under pressure from environmental activists as well as members of the Democraticled state Senate, Dinapoli has said the fund would begin divesting from companies that couldn’t demonstrate they were preparing for a shift to low-carbon energy production and taking precautions to limit their own carbon loads.
While representing a very small chunk of the state retirement fund’s overall holdings, oil sands producers are among the most carbon-intensive fuel producers.
Much of the oil sands, also known as tar sands, found in western Canada produce a heavy variety of crude oil extracted from a mixture of sand, water, clay and bitumen in the region’s soil. Producing the oil requires much energy in itself.
There is no set time frame for divesting from the companies.
According to Stand.earth, an environmental organization that looks at the fossil fuel and industry, 1,300 institutions have committed to some form of fossil fuel divestment. Those include pension funds, universities and colleges, faith and philanthropic organizations as well as cities.