New York State pension fund restricts investments in Canadian oil sands companies (updated)

Athabasca Oil

12/04/2021 16:15

(Adds details, quote)
    By Nia Williams
    CALGARY, Alberta, April 12 (Reuters) - New York's state
pension fund is restricting investment in six Canadian oil sands
companies because they have not shown they are prepared for a
transition to a low-carbon future, the fund's Comptroller Thomas
DiNapoli said on Monday.
    The fund will divest more than $7 million in securities
already held in the companies, and not make any further
investments in them, DiNapoli said in a statement.
    The companies are Imperial Oil  IMO.TO , Canadian Natural
Resources Ltd  CNQ.TO , MEG Energy Corp  MEG.TO , Athabasca Oil
Corp  ATH.TO , Japan Petroleum Exploration Ltd  1662.T , and
Cenovus Energy Inc  CVE.TO . A seventh company mentioned in
DiNapoli's statement, Husky Energy, was acquired by Cenovus in
January.
    "We have carefully reviewed companies in the oil sands
industry and are restricting investments in those that do not
have viable plans to adapt to the low-carbon future," DiNapoli
said. "Companies responsible for large greenhouse gas emissions
like those in this industry, pose significant risks for
investors."
    The New York State Common Retirement Fund is the
third-largest pension fund in the United States with an
estimated valuation of about $248 billion.
    In December, it was the first U.S. pension fund to commit to
helping curb climate change by transitioning its investments to
net-zero greenhouse gas emissions by 2040, making it the first
U.S. pension fund to set the goal by that date.  urn:newsml:reuters.com:*:nL4N2IP3FV
    

 (Reporting by Nia Williams
Editing by Bill Berkrot)
 ((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters
Messaging: nia.williams.thomsonreuters.com@reuters.net))