New York State Comptroller announces the New York State Employees' Pension Fund has reached climate agreements with five portfolio companies

On August 27, 2024 New York State Comptroller Thomas P. DiNapoli announced the NY State Pension Fund committed an additional $2 billion to Climate Change Index strategy.

Click on the text in color to access the text of reports posted on the Internet.

Comptroller DiNapoli, releasing the fourth annual Climate Action Plan Progress Report, reported the New York State Common Retirement Fund (Fund) "reached climate-related agreements with five portfolio companies during the 2024 proxy season and added $2 billion to the MSCI World ex-USA Climate Change Index strategy".

“As trustee of the Fund, one of my top priorities is safeguarding the investments made for the benefit of the more than one million participants in the New York State retirement system,” DiNapoli said. “To foster long-term financial success, it is essential to address the climate-oriented investment challenges faced by the Fund’s portfolio. Climate change is an increasingly urgent risk facing all investors.”

The Fund reached agreements with Southwest Airlines Inc. and steel-maker Cleveland-Cliffs Inc. to set greenhouse gas emissions (GHG) reduction targets and publicly disclose climate transition action plans. The utility WEC Energy Group Inc. agreed to publicly disclose a feasibility study on integrating climate metrics into its executive compensation plan. McDonald’s Corp. agreed to assess supply chain water-related business risks and/or set water quality and quantity targets, while Realty Income Corp., a real estate investment trust, agreed to adopt and publish a low-carbon transition plan.

DiNapoli also made an additional investment of $2 billion to a fund tracking the MSCI World ex-USA Climate Change Index, which is designed to address climate-related risks by increasing the weighting of companies that engage in climate solutions and decreasing the weighting of companies that face greater climate transition risks. The index aims to reduce its overall Scope 1, 2, and 3 greenhouse gas emissions intensity by a minimum of 30% relative to its benchmark. The investment follows an initial allocation of $1 billion made to this strategy in March 2023.

Proxy Votes:

In February, the Fund amended its proxy voting guidelines to include updates on the Fund’s expectations for portfolio companies’ climate performance including climate transition plans, and comprehensive disclosure of such plans, climate risks, risk management, governance, targets, metrics, and opportunities. It also provided more clarity regarding physical risk, deforestation, and the potential impacts of biodiversity loss.

During the 2024 proxy season, the Fund withheld support from or voted against 1,900 individual directors at over 600 portfolio companies that lacked robust climate risk management, including ConocoPhillips Co., Lockheed Martin Corp., and Exxon Mobil Corp. The fund also supported the following shareholder proposals: Southern Co., seeking disclosure of short- medium- and long-term operational GHG targets; Chevron Corp., seeking disclosure of how reductions in virgin plastic demand may impact its financial position; and Amazon.com Inc., seeking disclosure of how it is addressing the impact of its climate change strategy on key stakeholders.

SICS Investments:

To date, the Fund has deployed over $22 billion, towards its goal of $40 billion, to specific investment opportunities across asset classes in its Sustainable Investments and Climate Solutions (SICS) program, the majority of which are investments in climate solutions. Investments include actively and passively managed public equity, climate-oriented index funds, green bonds, sustainable infrastructure funds, and real estate investments with energy efficient buildings.

Investments over the past year include:

·                                 Copenhagen Infrastructure V (€300 million), a Danish investment firm specializing in renewable energy infrastructure assets, including onshore and offshore wind, that contribute to a green energy transition.

·                                 Carlyle Renewable and Sustainable Energy Fund II ($200 million), a North American private equity fund that makes targeted investments in renewable energy sources, such as solar, wind, battery energy storage systems and energy transition, electric vehicles, distributed energy resources, and decarbonization technology solutions principally in Organization for Economic Cooperation and Development markets.

·                                 EQT Fund VI ($450 million), a Swedish infrastructure fund that makes private investments with a focus on decarbonization, resource efficiency, and pollution control.

·                                 Fundamental Empire Fund ($375 million), a North American fund that opportunistically makes investments in affordable and workforce housing, renewable energy, infrastructure, and municipal assets.

In 2019, DiNapoli released a Climate Action Plan, a multi-faceted strategy to invest in sustainable companies, pursue climate solution investments, and apply minimum standards to inform engagements and potential divestment decisions. Each year since, DiNapoli has issued a progress report on the plan.

The New York State Common Retirement Fund is one of the largest public pension funds in the United States. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. It has consistently been ranked as one of the best managed and best funded plans in the nation.

Report:

Progress Report on the New York State Common Retirement Fund’s Climate Action Plan

 

Disciplinary decision posted on the Internet by the New York City Office of Administrative Trials and Hearings

OATH Administrative Law Judge Tiffany Hamilton recommended termination of the employment of a Correction Officer [CO] who struck a restrained person in custody. 

CO and another correction officer were escorting a rear-cuffed person in custody when that person in custody spat at CO’s face.CO responded by punching the person in custody three times in the face with a closed fist. 

The ALJ rejected CO's argument that the use of force was necessary to protect himself against imminent bodily harm, finding there was no evidence that the person in custody was about to attack CO  and CO's use of three facial strikes was retaliatory and punitive.

Noting the egregiousness of the misconduct, coupled with CO’s extensive disciplinary record that included two prior uses of force, Judge Hamilton  determined that continued employment would be a threat to the good order of the Department. 

Click HERE to access the Administrative Law Judge's decision and recommendation posted on the Internet.

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Advisory Memorandum recently issued by the New York State Department of Civil Service has been amended

The Department of Civil Service has published amended versions Memorandum 24-06, Paid Parental Leave for NYSCOPBA – Security Services Unit (SSU), PBANYS – Agency Police Services Unit (APSU) and Council 82 – Security Supervisors Unit (SSpU) Represented Employees, as amended.

The text of Advisory Memorandum 24-06-Amended is posted on the Internet at:

https://www.cs.ny.gov/ssd/Manuals/SPMM/2800AutoPositPersnl/AdvisoryMemo24-06-A.htm.

 

Memorandum 24-06-Amended, in PDF format is posted on the Internet at:

https://www.cs.ny.gov/ssd/pdf/AM24-06-A.pdf

N.B.: NYPPL's pre-amendment posting of Memorandum 24-06 has been deleted from this LawBlog.  

It is suggested that any downloaded copies of the earlier version of Memorandum 24-06 be discarded.

Plaintiff alleges public employer negligently retained a sworn officer in its employ as a police officer

This action resulted from an incident where an off-duty police officer [Officer] was at a social affair and the Plaintiff [Security Guard] in the action was employed as a security guard at that event. 

The record indicates that there was a dispute between the Security Guard and the Officer. Security Guard alleged that Officer drew a weapon and pointed it at the Security Guard's head, pulled the trigger of the weapon and although Security Guard heard the weapon "click", it did not fire. 

Officer was subsequently subdued, arrested and ultimately convicted of menacing in the Second Degree.

Security Guard initiated the instant action against Officer and Officer's employer [City], contending that, other things, City negligently retained Officer as a police officer, entrusting him with a firearm and the license to carry a firearm. City moved for summary judgment dismissing the complaint insofar as claims asserted against City. 

The Appellate Division's decision notes an earlier incident, the "2016 incident", where Officer [1] unlawfully discharged his service weapon into the air while off duty and intoxicated; and [2] was convicted of a misdemeanor [prohibited use of a weapon]. As a result of that incident, Officer lost his privileges to carry a weapon for approximately one year, was demoted, and was required to complete an alcohol treatment program.

With respect to the 2016 incident, which did not involve aggression or violence towards another person, the Employer contended the event "was insufficient to put the City on notice that [Officer] was disposed to engage in the type of violent behavior that occurred [in the course of the subject] incident."

In opposition to the motion, the Security Guard argued, among other things, that the 2016 incident provided the City with sufficient notice of Officer's violent tendencies and that the City was negligent in retaining Officer and restoring him to active duty with firearms.

Supreme Court granted that branch of the City's motion seeking summary judgment dismissing the cause of action alleging it negligently retained Officer as an employee insofar as asserted against it. Officer appealed Supreme Court's ruling.

The Appellate Division said "[U]nder the theory of negligent hiring and retention, an employer may be liable for the acts of an employee acting outside the scope of his or her employment. A cause of action for negligent retention, however, requires proof that [1] the employer knew or should have known of the employee's harmful propensities; [2] that it failed to take necessary action; and [3] that this failure proximately caused the plaintiff's injuries."

Addressing the City's motion, the Appellate Division opined that City "established its prima facie entitlement to judgment as a matter of law" by demonstrating that it did not know or have reason to know of Officer's propensity to caused injury as the result of its knowledge of the 2016 incident.

In the course of the 2016 incident Officer discharged his firearm into the air while intoxicated. Such action, opined the Appellate Division, "was insufficient to put the City on notice of any propensity of [Officer] to act violently or aggressively in the manner that he did towards the Security Guard."

The Appellate Division then ruled that Supreme Court "properly granted that branch of the City's motion" seeking summary judgment dismissing the cause of action alleging negligent retention of Officer insofar as asserted against City.

Click HERE to access the Appellate Division's decision posted on the Internet.

New Attendance and Leave Bulletins promulgated by the New York State Department of Civil Service posted on the Internet

Policy Bulletin 2024-07, addressing Paid Parental Leave for Council 82 – Security Supervisors Unit (SSpU) Employees and Policy Bulletin 2024-08, addressing Attendance and Leave Items – 2023–2026 State-District Council 37 (DC-37) Negotiated Agreement have been posted on the Internet by the New York State Department of Civil Service.

The URL for accessing the text of Policy Bulletin 2024-07 is  https://www.cs.ny.gov/attendance_leave/PolBull24-07.cfm

Also available for downloading is a version of Policy Bulletin 2024-07 in PDF format at: https://www.cs.ny.gov/attendance_leave/PB2024-07Combined.pdf

Text of Policy Bulletin 2024-08 is posted on the Internet at:
https://www.cs.ny.gov/attendance_leave/PolBull24-08.cfm

Policy Bulletin 2024-08 in PDF format is posted on the Internet at:
https://www.cs.ny.gov/attendance_leave/PB2024-08.pdf

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