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However, the fund will keep another 21 shale companies including
CNX Resources Corp and EQT Corp according to material reviewed
by Reuters from New York Comptroller Thomas DiNapoli, who
oversees retirement assets.
"To protect the state pension fund, we are restricting
investments in companies that we believe are unprepared to adapt
to a low-carbon future," DiNapoli said in a statement sent by a
spokesman. A review found the companies being sold continue to
invest heavily in high-risk and high-cost assets, a spokesman
for DiNapoli's office said via e-mail.
None of the companies responded to messages seeking comment.
A U.S.-pioneered method of pumping water, sand and chemicals
into shale rock formations releases trapped oil and gas. Shale
discoveries in recent decades have made the U.S. the world's
largest oil producer and a top natural gas exporter.
The $280 billion New York State fund is not a major holder of
shale companies, but as the third-largest U.S. state pension
fund its decisions are closely followed as other institutions
weigh whether to move away from fossil fuel stocks.
Last year DiNapoli said the fund would sell $7 million worth of
securities in Canadian oil sands companies and start its shale
companies review. Next it will review whether to take similar
steps for big integrated oil companies.
Some activists have pressured for more complete divestment and
won over universities and institutions including New York City
retirement funds. Maine state pension officials are developing
plans to sell fossil fuel stocks as required by a new law.
But the top pension fund, the $500 billion California Public
Employees' Retirement System (Calpers), is not ready to broadly
divest, said Simiso Nzima, its managing director of global
equity, in an interview on Tuesday.
"When you divest you don't solve climate change, you don't solve
the issues," he said. Rather, Calpers will likely vote against
more company directors this year over topics like the
environment or boardroom diversity, Nzima said.
In addition, some Republican state officials have opposed
investor efforts to pressure fossil fuel companies.
New York will sell the shale stocks in "a prudent manner and
timeframe," according to the statement.
(Reporting by Ross Kerber in Boston, additional reporting by
Gary McWilliams in Houston, editing by Richard Pullin)
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