New York City, New York, USA: New York City Comptroller Brad Lander is pushing for the city’s pension funds to reconsider their $42.3 billion contract with BlackRock, arguing that the asset manager has not prioritized climate concerns adequately. This move represents the first major effort by a Democratic official to counter Republican pressure on financial firms from fossil-fuel-aligned politicians.
Lander’s term concludes on December 31, and his November 26 recommendation could place Mayor-elect Zohran Mamdani in a delicate position as he assumes office in roughly five weeks. BlackRock has signaled its intent to retain the city’s pension business, and Mamdani’s key appointments to pension boards will influence decisions about the retirement funds of approximately 800,000 current and former city employees.
In a memo to fellow pension fund trustees dated November 25, Lander urged a re-evaluation of contracts with BlackRock, headquartered in New York. Lander criticized what he called BlackRock’s “restrictive engagement” with roughly 2,800 U.S. companies where it owns more than 5% of shares.
Under pressure from former President Donald Trump’s administration, BlackRock announced in February that it would refrain from using corporate dialogues to influence company policies. Lander and other environmentally focused investors have pushed fund managers to hold executives accountable on issues such as emissions disclosure.
Lander described BlackRock’s shift as “an abdication of financial duty,” asserting it undermines their ability to meet responsible investment standards. His proposal still requires approval from the pension boards, which typically follow guidance from the comptroller’s office. Mamdani’s representatives did not respond to requests for comment. A spokesperson for Lander’s successor, Mark Levine, said the recommendation will be reviewed.
During the mayoral campaign, Lander, once a rival of Mamdani, became an ally and suggested keeping BlackRock for non-U.S. equity index mandates and other investment products. He confirmed to Reuters that he is considering a congressional run next year, but stressed that his BlackRock recommendation is unrelated to his political plans.
BlackRock’s Armando Senra, head of the Americas institutional business, responded in a letter stating that Lander’s claim of the company neglecting its financial duty and exposing pensions to climate risks “reflects the politicization of public pension funds,” which he argued undermines the retirement security of New Yorkers. Senra added that BlackRock looks forward to demonstrating its value to the city’s public servants.
Additionally, Lander suggested continuing the city’s $8 billion equity index investments with State Street, while recommending ending contracts with Fidelity Investments and PanAgora, which he said do not sufficiently advocate for corporate environmental accountability.
Across the U.S., several Republican-led states have pulled funds from BlackRock and similar managers, citing concerns that investments are influenced by social or environmental considerations. If enacted, New York City would be the first large Democratic-aligned pension fund to take such action.
Lander highlighted that a review of the city’s 49 fund managers found 46 met his expectations for promoting corporate decarbonization. Environmental advocacy groups, including Stand.earth, praised Lander’s recommendations and urged the pension trustees, including those appointed by the incoming mayor, to act decisively.
