City Auditor Brad Lander departed from his position in a rather underwhelming fashion, making a symbolic gesture about climate change by calling for a reevaluation of the city’s pension fund investments.
He urged fund managers to cut connections with firms like BlackRock, Fidelity Investments, and PanAgora Asset Management, criticizing them for not succumbing to what he views as excessive climate concerns.
“Climate risk is a financial risk,” Lander insisted. “We’ve observed increases in flash floods and wildfires lately.”
However, one could argue that the scientific evidence doesn’t necessarily support the immediate dire impacts of global warming, and most major companies don’t seem to factor in significant risks to their earnings due to these concerns. Advocates like Lander appear to desire a shift in financial attitudes, suggesting that investment is not worthwhile under looming climate disasters.
In response, BlackRock rightly labeled Lander’s actions as “an example of how politicizing public pension funds can undermine the financial security of dedicated New Yorkers.”
Lander seems to prefer performative actions that signal righteousness rather than genuinely working in the best interests of the fund’s stakeholders. It raises further questions about the rationale behind keeping approximately 800,000 current and former city employees—along with the taxpayers who support these pensions—off the city’s financial responsibilities.
The reality is that “decarbonizing” pension funds won’t contribute to planet-saving efforts. It could instead decrease the funds’ investment potential.
It’s refreshing to see auditors being mindful of not spending public money on ideological projects.
As Lander prepares to exit the Comptroller’s Office on December 31st, it seems this will be the end of his less-than-stellar political journey.
Let’s hope that Democratic voters aren’t easily swayed by the upcoming challenge against Congressman Dan Goldman next June, as Lander looks to find his place in the private sector.
