For oil and gas companies to avoid being withdrawn from the $226 billion employee pension plan in the U.S. state of New York, they have to align their business plans with the goals of the Paris climate accord within the four next years.
“Achieving net-zero carbon emissions by 2040 will put the fund in a strong position for the future mapped out in the Paris Agreement,” says New York’s comptroller Thomas DiNapoli. Other endowments and portfolios worth more than $14 trillion follow on New York’s heels.
Big oil companies have started to invest more in renewable energy. BP PLC will reduce its production by 40% over the next decade, and Exxon will cut its exploration and capital expenditure budget from $30 billion to $35 billion next year.