New York pension fund to divest some Exxon holdings

investing.com:

By Seher Dareen and Ross Kerber

(Reuters) -The New York State Common Retirement Fund will restrict its investments in eight integrated oil and gas companies, including the divestment of a small share of its holdings in Exxon Mobil (NYSE:XOM), New York Comptroller Thomas DiNapoli, who oversees retirement assets, said on Thursday.

The move follows a review of the companies' readiness to transition to a low-carbon economy, DiNapoli said in a statement.

The move amounts to a compromise measure by the third-largest U.S. state pension fund as it and other big investors face calls from environmental groups to more fully divest from fossil fuels, something few have done.

The New York State fund had holdings of nearly $26.8 million as of Dec. 31, 2023 from the companies to be divested and restricted, which include Guanghui Energy Company, Echo Energy, IOG, Oil and Natural Gas Corp, Delek Group, Dana Gas, and Unit Corp.

Those holdings were in corporate bonds and actively managed public equity, DiNapoli's office said. The fund «will continue to hold Exxon and the others that are restricted in its passive index holdings at this time,» a spokesman for DiNapoli said via e-mail.

While about $25 million worth of Exxon shares will be divested, the fund's other Exxon holdings total about $500 million, spokesman Matthew Sweeney said.

«The passive strategy is fundamental to the Fund and has been successful. The review determined that removing it from the passive index would go against fiduciary duty at this time,» Sweeney said.

It also will continue to own other oil majors such as Chevron (NYSE:CVX), BP (NYSE:BP) and Shell (LON:SHEL)… DiNapoli's office said that is partly because Exxon is the rare company without targets to cut so-called