The New York State Common Retirement Fund put $800 million in sustainable fixed-income strategies this year, including sustainable private credit and green bonds, a rare big bet on debt in the equity-dominated market for responsible investing.
The $210.5 billion public pension fund said it invested $300 million in Avenue Capital’s new Sustainable Solutions Fund, which is betting on private credit with environmental benefits. It also invested $250 million in the Nuveen Core Impact Bond Strategy and another $250 million in the Calvert Social Investment Fund, which is focusing on green bonds and affordable housing.
The investments are part of New York State Comptroller Thomas DiNapoli’s plan to commit $20 billion to sustainable investments and climate solutions. To date, the fund has deployed $8.5 billion of that commitment.