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This audio is auto-generated. Please let us know if you have feedback<\/a>.<\/p>\n Dive Brief:<\/p>\n Dive Insight:<\/p>\n Lander, whose term as comptroller ends at the end of the calendar year, said all 49 of the asset managers for the city\u2019s pension plans submitted their decarbonization plans to measure their alignment with the city\u2019s Net Zero Implementation Plan. However, following an evaluation of those plans, BlackRock, Fidelity and PanAgora\u2019s plans did not meet climate expectations, Lander said.\u00a0<\/p>\n BlackRock is the pension system\u2019s largest asset manager and currently manages $42.3 billion for all three pension plans, according to Lander\u2019s letter to trustees. Fidelity manages $384 million for the TRS plan, and PanAgora manages $358 million for the TRS and NYCERS plans, according to the letter to the plans\u2019 trustees. Lander said in the Nov. 26 release that the three asset managers \u201cfail to address climate risk with the seriousness [the pension plans] expect.\u201d<\/p>\n \u201cThe systemic risk of the climate crisis threatens the long-term value of New York City\u2019s pension funds,\u201d Lander said. \u201cOur Net Zero plan is a core part of our fiduciary duty to protect these assets. I am pleased to report that 46 of our 49 public markets managers are aligned with our expectations for decarbonization; unfortunately, three are not.\u201d<\/p>\n The NYC comptroller said he has \u201csignificant concerns regarding BlackRock\u2019s restrictive approach\u201d to engaging with public companies it owns more than 5% of the equities. The asset manager said it will not proactively reach out to on proxy voting issues to align with a \u201cconservative interpretation\u201d of the Securities and Exchange Commission\u2019s updated engagement<\/a> guidelines.<\/p>\n BlackRock also recently began allowing clients it doesn\u2019t vote proxies for to opt into its Climate and Decarbonization Stewardship strategy, which Lander recommended the trustees\u2019 formally vote to approve for the system\u2019s non-U.S. equity index funds that BlackRock manages. For the public equity index funds BlackRock manages for the system, Lander recommended issuing a search notice to find \u201cappropriate managers for BlackRock\u2019s U.S. public equity index mandates to address the Systems\u2019 climate expectations consistent with fiduciary duties.\u201d<\/p>\n \u201cWhile BlackRock has a global [Climate and Decarbonization Stewardship] focus list of 900 companies, it says it will not proactively reach out to U.S. companies nor set agendas for engagement; consequently, it cannot meet the Systems\u2019 expectations set forth in the Plans,\u201d Lander told the system\u2019s trustees. \u201cBlackRock also says it cannot seek to influence these companies\u2019 actions, which means it cannot meet the Systems\u2019 expectations set forth in the Plans with respect to their U.S. portfolios.\u201d<\/p>\n In a follow-up statement issued Wednesday, BlackRock said it had responded to a direct request from the New York City Bureau of Asset Management \u2014 which oversees the investments for the city’s five public pension funds \u2014 and met with its investment team earlier in the month to provide an update on its Climate and Decarbonization Stewardship program. The asset manager said it informed NYC BAM that a version of the program was now available to all five pension plans.<\/p>\n\n