Stewardship and Investment Beliefs

Our View on Responsible Stewardship

As fiduciaries, NYSTRS’ Board must be responsible and thoughtful stewards of the fund and act for the exclusive benefit of NYSTRS members and beneficiaries. This deliberate approach is essential to ensure the System meets the retirement benefit payroll and therefore fulfills its fiduciary obligation to provide our members with a secure retirement.

NYSTRS approaches this from the starting point that we are universal owners with a long-term view of the markets. To ensure we can meet our fiduciary responsibility, we identify long-term risks to our portfolio through independent measurement and assessment.

To manage these risks, the System engages with the companies in which we invest, vote our proxies, and seeks opportunities to invest in companies and areas that can help to mitigate the risks we have identified.

What are universal owners?
Investors with highly diversified and long-term portfolios that are representative of global capital markets.

Risk Mitigation

As a universal owner with a long-term view of the markets, and to ensure we meet our fiduciary responsibility, NYSTRS identifies long-term risks to our portfolio through independent measurement and assessment. To manage these risks, the System engages with the companies in which we invest, vote our proxies, and look for opportunities to invest in companies and areas that can help to mitigate the risks we have identified.

NYSTRS’ Board relies on its Investment Beliefs to provide a consistent and transparent framework to guide the System’s investment decision-making processes, including risk mitigation.

Refer to the following reports that summarize NYSTRS’ deliberative process to address climate risk and opportunities related to its investment portfolio.

• March 2024 Stewardship Report
• January 2023 Stewardship Update: Climate Change Action Through Responsible Stewardship
• December 2021 Climate Update

NYSTRS is committed to working with investor networks and industry groups focused on climate matters and sustainable investing. This active participation is just one important component of the System’s investment belief on the responsible stewardship of its assets. The collaboration with other institutional investors enables the System to harness collective influence in our engagement efforts. Actively participating with other organizations helps to shape future rules and regulations related to sustainable investing.

NYSTRS is a member of the following organizations:

• Ceres – NYSTRS participates in the Ceres Investor Network which advances sustainable investment practices, engages with corporate leaders, and advocates for key policy and regulatory solutions to accelerate the transition to a net zero emissions economy.
• Climate Action 100+ – An investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take action on climate change.
• Climate Engagement Canada – A finance-led initiative that drives dialogue between the financial community and corporate issuers to promote a transition to a net zero economy.
• Council of Institutional Investors – An organization focused on corporate governance, shareholder rights and financial regulations that foster fair, vibrant capital markets.
• ISSB Investor Advisory Group – The ISSB Investor Advisory Group (IIAG) is a group of leading asset owners and asset managers in various markets who are committed to improving the quality and comparability of sustainability-related financial disclosures. The IIAG serves as an advisory body to the ISSB (International Sustainability Standards Board), part of the International Financial Reporting Standards Foundation.