Business
Pension Funds Push Forward on Climate Goals Despite Backlash
In the past few months, some of the largest banks and asset managers in the United States have quit net zero networks, the climate groups that encourage their members to set ambitious carbon reduction targets and collaborate internationally on sustainability efforts.
But the week after Donald J. Trump won re-election in November, NYCERS, a pension fund for New York City employees, went in the opposite direction. It joined a United Nations-affiliated climate action group for long-term investors, the Net Zero Asset Owner Alliance.
The timing wasn’t intentional, said Brad Lander, the comptroller who oversees the city’s finances, including the pension fund, and is now running for mayor. But, he added, “we were pleased that the timing sent an important signal.”
“It is far more important than it was for pension funds and other big asset owners to take collective action at this moment,” Mr. Lander said.
At a time of growing backlash to environmental, social and governance goals and investment strategies, pension funds, particularly in blue states and Europe, have emerged as a bulwark against efforts to sideline climate-related risks.
The funds, which sit at the top of the investment chain, have stepped up engagement with asset managers and companies on climate goals and have kept public commitments to use their fiscal might to reduce carbon emissions. In some cases, that has meant shifting to European asset managers, which have not backed off on climate commitments as much as their American counterparts have.
Mr. Lander’s office oversees investments for five public pension funds for 700,000 of the city’s current and former employees. The funds are pushing ahead with engagement, bringing more shareholder resolutions to banks to disclose the ratio of their fossil fuel investments versus clean energy and to utilities companies on their climate targets.
They have been emboldened by a court decision earlier this month that upheld a dismissal of a lawsuit against three of the funds for divesting from some fossil fuel investments.
Mr. Lander and other pension fund managers say they aren’t motivated by political beliefs or a purely environmental agenda. Instead, their investments, which need to provide long-term sustainable returns for people who might not retire for many decades, keep climate risks at the forefront of their minds.
The net zero alliance is “the opposite” of an activist, Peter Stensgaard Morch, the chief executive of PensionDanmark and a member of the alliance’s steering group, said in a written response to questions. Its work is driven by the fiduciary duty of its members to seek the highest possible returns, he added.
Recent actions by pension funds stand in contrast with those of other institutions that are loosening their climate commitments. A net zero group for banks is considering dropping the pledge to align banks’ portfolios with a goal of limiting global warming to 1.5 degrees Celsius. Some big energy companies, such as BP, have pared back their renewable investments. Last month, the European Commission proposed relaxing climate reporting rules for companies, citing concerns that the regulation was too onerous and would impede economic growth.
The U.N. asset owner group, which includes pension funds, insurers, foundations and other long-term investors, has fared better than its counterparts. Asset managers, who are in a tug of war between customers in blue and red states, have pulled out of previous public commitments to climate goals. The U.N. group for asset managers, which used to include BlackRock, has suspended its activities, and the group for banks lost 17 big members in the past four months.
Intense political and legal attacks in the United States, notably from red states with anti-E.S.G. laws, have pressured asset managers to abandon climate action groups and simultaneously widened the chasm between Europe and the United States on sustainability efforts.
The People’s Pension, a British fund that has about £32 billion ($41 billion) in assets and manages pensions for nearly seven million people, recently shifted most of its assets away from State Street, the U.S. firm that was its only asset manager, to Amundi, a French company, and Invesco. The fund was seeking more asset managers with strong sustainability credentials in line with its own responsible investment commitments, said Dan Mikulskis, the chief investment officer.
“We don’t interact directly with companies,” Mr. Mikulskis said. “We rely on asset managers to do that for us.”
During the search, which lasted about a year, asset managers started to go “different ways” from one another, as he diplomatically put it. But that made it easier to determine those with the right approach for his fund.
Recently, a group of 27 pension funds, mostly from Europe, called on asset managers globally to improve their stewardship practices to address climate change risks and to stay in collaborative groups. They noted there had been a “divergence” between the expectations of asset owners and the actions of asset managers on climate stewardship.
This was backed up by a study by Principles for Responsible Investment, which found that among its 3,000 or so signatories, asset owners were much more likely to take a long-term approach to identifying climate risk and to use climate scenario analysis than the asset managers to whom they outsourced investing.
Progress by some companies on climate action is slowing amid short-term pressure, such as a rise in energy prices, said Diandra Soobiah, the head of responsible investment at Nest, a British state-backed pension fund with £48 billion ($62 billion) in assets.
“These pressures have had an impact, but what we are trying to do as long-term investors is really talk about the importance in managing these long-term risks,” she said. “We still believe the world is going to have to transition, and want them to be prepared.”
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Elon Musk said he sold X to his A.I. start-up xAI. In an all-stock deal that shows how parts of Musk’s business empire can intertwine, xAI was valued at $80 billion and X was valued at $33 billion, which is $11 billion less than Musk paid for the company when he acquired it in 2022.
Resurgent inflation data sent markets tumbling. The closely watched Personal Consumption Expenditures report showed that inflation rose last month above Wall Street forecasts, driven by a surge in the prices of everyday items. Economists warn that President Trump’s trade war and his crackdown on immigration could accelerate inflation further. The report sent stocks sharply lower, with the S&P 500 on pace for its first losing quarter since 2023.
Trump unveiled new tariffs and vowed that more would go into effect next week. The latest — duties of 25 percent on the imports of cars and auto parts — were widely expected but still caught auto company executives, global leaders and investors off guard. That set off a diplomatic scramble with, the European Union reportedly identifying possible concessions ahead of negotiations to ward off the worst, according to Bloomberg. In addition, Trump and Prime Minister Mark Carney of Canada held what the president called “very productive” talks yesterday.
Major law firms pushed back against Trump. Federal judges issued temporary restraining orders on Friday blocking executive orders that essentially bar WilmerHale and Jenner & Block from working with the federal government or even entering federal buildings. (A third law firm, Perkins Coie, sued earlier on similar grounds.) Trump’s attacks on Big Law have rocked the sector, with firms facing a dilemma: try to cut a pre-emptive deal with Trump or risk losing clients and having their partners poached by rival firms.
Philanthropy is under pressure
As the Trump administration slashes its way through Washington, nonprofit organizations are bracing for a big hit.
The federal government contributes about $303 billion a year to more than 100,000 U.S. nonprofit groups, ranging from neighborhood community projects to overseas aid, according to Candid, a research data organization that tracks the sector.
Many of those grants are now at risk from deep cuts at the United States Agency for International Development, the National Institutes of Health, and other federal agencies, as Trump and DOGE work to slash spending and end support for issues like climate action and diversity. Elon Musk this month called nonprofits “a giant graft machine.”
For weeks, nonprofits have wrestled in boardrooms and over Zoom with how best to maintain operations. The most obvious solution is to ask private donors and foundations to step up their giving — but those patrons can only do so much.
“Filling the gaps would be impossible,” Rick Cohen, chief operations officer for the National Council of Nonprofits in Washington, told DealBook. He estimates 30 percent of nonprofit revenues come from government contracts.
So what now?
Some philanthropy giants have increased their giving in response to Trump cuts. The MacArthur Foundation, whose $8.6 billion in assets supports programs in the arts, the environment and other areas, announced increases in grant spending for at least two years. Michael Bloomberg, founder of Bloomberg Philanthropies, said the organization would make up the funding shortfall in climate projects, as it did during Trump’s first presidency.
But foundations, which now give nonprofits about $107 billion a year, according to Candid, cannot fully compensate for government cuts. And trying to do so could be seen as “surrender in advance,” Matthew Bishop, the author of “Philanthrocapitalism,” told DealBook.
Increasing private gifts risks creating an illusion of stability. Some nonprofit organizations and philanthropy experts told DealBook that they worry that donors could mistakenly convey to the public and the Trump administration that nonprofits can survive without government help.
“We cannot in any way create the conditions for the argument of ‘Send it all in our direction,’” said Jeff Moore, the chief strategy officer for Independent Sector, a coalition of U.S. corporate and nonprofit philanthropies in Washington. “There is not enough money in the philanthropic universe to do what the federal government does.”
Nonprofits are scrambling for funds. Even where federal grant programs remain in place, DOGE firings have hollowed out the offices that process grants, hugely complicating the work of nonprofits. “There’s nobody there to send their application for funding to,” Cohen said.
At the same time, donors outside the federal government are being bombarded with appeals for help. Laetitia Cairoli, the director of development for Oasis Haven for Women and Children in Paterson, N.J., says she has looked to replace $500,000 in federal grants it expects to lose, but she has been told by New Jersey officials and private donors that they’re overwhelmed with requests. “They are seeing increased pressure on the funds,” she told DealBook.
Some private funding may also be in jeopardy. Executives have grown increasingly wary of even tangential politics, including which programs their companies support.
The Howard Hughes Medical Institute canceled a $60 million program for student diversity in science and medical education. The Chan Zuckerberg Initiative, Mark Zuckerberg’s for-profit philanthropy, scrapped funding for diversity and immigration-reform programs, citing “the shifting regulatory and legal landscape.” And this month, the Gates Foundation made sweeping cuts to its climate program, Breakthrough Energy, as Bill Gates works to repair his fractious relationship with Trump.
“There has been a big backing away from anything that could be seen as woke,” Bishop said. Even funding gay pride marches or local libraries could now be deemed too risky. “Companies don’t want to bring attention to themselves,” he said.
The looming tax battle could hit hard. As Congress tries to pass a budget bill this year, nonprofits’ tax status looks set to be a fraught issue, with philanthropic organizations arguing for a universal charitable deduction, allowing those who take a standard deduction on their tax returns to still write off donations, while the administration seeks to scrub projects considered political. Losing tax-exempt status is nonprofits’ worst fear. “That could cost them millions and millions of dollars,” Bishop said.
Nonprofits are in triage mode. Tweaking operations, as nonprofits did during Trump’s first term and the pandemic, is no longer enough. “The cuts are so broad and so deep, food banks cannot get the food they were promised,” said Cohen. His organization, the National Council of Nonprofits, which represents 30,000 nonprofits and donors, was part of a lawsuit that won a temporary injunction in January against Trump’s blanket federal funding freeze. The final outcome of that challenge has yet to be determined.
For now, organizations are most likely to do triage, salvaging what they can, as they winnow down operations. “Figuring out which programs you really need to survive is an important strategic question,” Bishop said. “It’s necessary to be ruthless in cutting free those you don’t feel are essential and doubling down on those that are right.”
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Business
Gas is $10 a gallon at a Big Sur station. The owner explains why his prices can’t go higher
The owner of Gorda by the Sea, the lone gas station for several miles in any direction from this remote, scenic hamlet in Big Sur, is charging $9.99 for a gallon of gas because, well, that’s as high as the digital numbers on the gas pumps allow.
“The software only goes to $10,” said Leo Flores, owner of the gas station and mini-market. “I know, sometimes someone wants to make a good story because of it, but we have to tell you why.”
As the lone gas station for at least 12 miles along Highway 1, the service station often prompts drivers to gasp or clutch their wallets at the sight of a $9.99 price tag for a gallon, but Flores insists he’s not trying to price-gouge his customers. In fact, he’s worried that if gas prices go much higher, it might put him out of business.
“People think you make money, but I’m not,” he said in an interview with The Times.
Motorists across the country have been griping since gasoline prices began to surge last month after the start of the U.S.-Israeli war on Iran, which restricted the flow of oil from key oil-producing countries. Flores’ business is an example of how sky-rocketing fuel prices are having ripple effects throughout the economy.
The isolated gas station has been featured in the news in the past for its high prices, but Flores, who has owned the station for the last 30 years, said there’s a simple reason why the cost is so high.
“We run this place on generators,” he said. “The generators run on five to six gallons of gasoline every hour.”
It’s not just the gas station that runs on generators, he said. The small oceanside community surrounding the gas station — the mini-market, the cafe, the hotel and nearby cabins — is owned by Flores and runs on generators because there is no access to an outside electrical plant.
“When I explain why to people, they’re happy to pay what I ask them,” Flores said. “It costs me more to make my own electricity.”
According to AAA, as of Friday the national average cost of a gallon of regular gas is up to $4.09, and in California it’s $5.86. In Los Angeles County it’s even higher — about $6 a gallon. At gas stations around Gorda by the Sea, the average cost also sits at $6, according to AAA.
Flores said he has considered using solar panels to generate electricity, but the initial cost is high. To raise his gas prices any higher, he’d have to buy new pumps, an investment he’s not sure he could afford now.
High prices are not his only worry. The entire hamlet can operate only if Flores’ regular gasoline deliveries make it through on Highway 1 every two weeks.
When the highway shut down for three years because of landslides starting in 2023, he said, he struggled to get gas deliveries to run his generators and survived on only 10% to 20% of the business he normally sees. He barely made it, he said, until the highway reopening in January.
“It’s a big deal,” he said. “If the highway is closed in both directions, I’m screwed.”
Flores complained that no one pays attention to his struggles when Highway 1 closes, but it’s another story when gas prices spike.
“Why when the highway opens and I raise the price everyone points at me like I’m the bad guy?”
Business
President Trump bashed State Farm on social media: Why it didn’t come out of the blue
Victims of the January 2025 wildfires unhappy with how insurers have handled their claims have filed lawsuits, protested and complained to local and state officials.
This week, they got support from an unexpected ally: President Trump.
“It was brought to my attention that the Insurance Companies, in particular, State Farm, have been absolutely horrible to people that have been paying them large Premiums for years, only to find that when tragedy struck, these horrendous Companies were not there to help!” Trump posted on Truth Social.
He also asked U.S. Environmental Protection Agency Administrator Lee Zeldin to give him a list of insurers that “acted swiftly, courageously, and bravely” to fulfill their legal obligation and another list of those that were “particularly bad.”
State Farm, California’s largest home insurer, is under investigation for how it has handled January 2025 wildfire claims. In a statement responding to the president’s post, it said it has received 13,700 claims, paid out $5.7 billion and expects total payments could reach $7 billion.
“Our leadership position in the California homeowners insurance marketplace means State Farm General Insurance Company — the State Farm company that provides homeowners insurance in California — insured more people impacted by this disaster than anyone else,” its statement read.
Tuesday’s post had its origins in a Feb. 4 visit that Zeldin and Small Business Administrator Kelly Loeffler made to the Los Angeles area, where they met with L.A. Mayor Karen Bass, Los Angeles County Supervisor Kathryn Barger and Pacific Palisades fire victims, among others.
The visit was prompted by Trump’s criticism of the slow rebuilding process and by a Trump executive order allowing victims of the Los Angeles wildfires to rebuild without having to deal with “unnecessary, duplicative, or obstructive” permitting requirements.
Aerial image of a neighborhood along Rambla Vista in Malibu taken in December.
(Allen J. Schaben / Los Angeles Times)
1. A view of destroyed beachfront properties remaining construction-free after the Palisades fire destroyed them last year in Malibu. 2. Aerial image of the remnants of an oceanfront neighborhood in Malibu taken in December after the massive Palisades fire destroyed hundreds of homes and businesses last year. (Allen J. Schaben / Los Angeles Times)
At the time of the order, Bass dismissed it as a “meaningless political stunt,” saying the president has no authority over local permitting but could assist by speeding up Federal Emergency Management Agency funding.
The American Property Casualty Insurance Assn. industry trade group, in its response to Trump’s post, continued to point fingers at the government. It noted the fires were the third-worst natural disaster in American history in terms of insured losses, at $40 billion.
“Permitting can be a frustrating process, and it can always be improved,” it said in a statement. “Los Angeles has been approving permits three times faster than it was before the fire. However, permit issuance continues to lag.”
Barger, whose district includes the Eaton fire zone in and around Altadena, said this week that she defended the local permitting process to Zeldin. But said she also pointed out complaints about how insurers, and State Farm in particular, have handled claims.
“Many people feel that the insurance industry has let them down, and the number one company that we hear about is State Farm,” she said. “Obviously, Administrator Zeldin met with the president and outlined what I told him.”
Bass, who also spoke on the phone with Trump last month, issued a statement saying she “recently requested that the President intervene with the insurance companies to ensure they pay claims so that survivors can afford to rebuild.”
“I want to thank President Trump and EPA Administrator Zeldin for taking action and working alongside us to help survivors get the support they need and deserve,” she said.
A White House official said Friday that the EPA was working to produce the list of insurers “as quickly as possible for the president” and the “best way for insurance companies to help is to immediately pay out what they owe so victims can rebuild their lives.”
Construction crews rebuild homes that were destroyed in the Eaton fire in Altadena on March 20.
(Allen J. Schaben / Los Angeles Times)
“Administrator Zeldin, on behalf of the president, is going to hold insurance companies accountable to the great people of California,” the official said.
The federal government has played a large role in the recovery, including leading the debris cleanup and, as of February, approving 12,600 Small Business Administration loans to fire victims totaling $3.2 billion.
However, a 1945 federal law, the McCarran-Ferguson Act, delegates authority to regulate the insurance industry primarily to individual states.
Joy Chen, executive director of Eaton Fire Survivor’s Network, which represents thousands of fire victims across Los Angeles, said her group believes the federal government has a larger role to play.
“President Trump has the opportunity to restore accountability to this broken system. Federal agencies have the tools to act,” said Chen, who has been sharply critical of State Farm’s claims practices and how California Insurance Commissioner Ricardo Lara has handled complaints against the company.
She specifically called for the Federal Trade Commission to examine “deceptive sales practices” that have left Americans underinsured and for the Department of Justice to investigate “industrywide claims practices that delay, deny or underpay payments owed to policyholders.”
Lara has defended his treatment of the company, noting regulators opened a probe of State Farm’s claims practices last year.
Martin Grace, a University of Iowa business professor and expert on insurance regulation, said that aside from the “bully pulpit” Trump exercised in his social media post, the federal government’s hands are largely tied.
“He can browbeat people, and Trump’s good at that. And I think the federal government, at one level, only has that. Now, Congress and the president together could say, ‘Listen, we don’t like what the states are allowing insurers to do, and we’re going to change the regulatory system,’” he said.
Grace noted that there was an insurance industry solvency crisis in the 1970s and 1980s that led to a 1990 Congressional report and federal pressure for improved state-level regulation, which was undertaken.
“Congress basically said, ‘Get your act together, or we’re going to take [regulation] back.’” And so the states got together and did a much better job on that,” he said.
Los Angeles attorney Richard Giller, who represents plaintiffs in lawsuits against insurers, said that the federal government could still take steps to improve the market.
Those might include establishing a federal reinsurance program that shares natural disaster risks with insurers, or covering the risk itself similarly to how the National Flood Insurance Program works.
“The catastrophe insurance industry in California is incredibly broken and needs some serious repair,” he said.
Business
Video: Skilled Foreign Workers Think About Leaving the U.S.
These highly skilled, highly educated foreign workers have been documenting the challenges of trying to build a career in the U.S. “If I don’t find a job, I have to leave the country.” “I sent out 907 applications.” “Have I ever truly relaxed in America?” They need an H-1B visa, which is given through a lottery system that allows U.S. companies to hire highly skilled international professionals for up to six years, in industries like tech and medicine. But the Trump administration has made changes to the program, requiring companies to pay a high fee and enforcing new rules that prioritize higher-paid foreign workers, in an effort to make more jobs available to Americans. This has forced some foreigners to rethink their career plans. “I think the U.S. is still the golden standard.” Wen-Hsing Huang came to the U.S. from Taiwan in 2022 for the tech scene, and was hired by Amazon on an H-1B visa. “I want to use my talents to change the world, and I think the United States was the best platform to do that.” Ananya Joshi came from India to attend a master’s program in Chicago in 2022. “So it was actually my my father’s dream that I had inherited because my father couldn’t go because of his financial situation.” Haina, a Chinese national, fell in love with the U.S. while studying in New York. She got her H-1B in 2022. “I remember there were a lot of companies, they would be able to sponsor.” Haina said she’s experienced a recent shift, where it has become harder to find companies that sponsor H-1B visas. “This time when I was job searching, I didn’t realize it could be a deal breaker. I just had my second interview of 2026, and it was a pretty short call.” (Recruiter) “I don’t think we’re eligible or able to do sponsorship for this role at the moment.” “They don’t even really get to know if I’m qualified, am I experienced, or anything. The decision is already made at that point.” “Please, please make sure that the company you’re about to work for has experience handling international hires.” Joshi said a start-up she interned with during grad school rescinded their promise to sponsor her H-1B visa. “Ask for everything in writing. And then there were jobs that were contract jobs. They would just reject me. They would only need people with a green card or a U.S. citizenship.” Even with an H-1B and a six-figure salary, Huang said he felt himself becoming anxious, as tech layoffs ramped up and Trump’s immigration policies kept changing. “I woke up every morning with this knot in my stomach, because my entire life depended on the policy I couldn’t control. The United States seems not very welcoming to immigrants that contribute to this country.” “The signals are, like, pretty clear at this point. They want to make this H-1B, is, like, risky and also, like, harder.” Hello, everyone.” Despite that, Haina says she’s determined to keep looking for a job until she’s forced to leave the country. “The pressure about where I’m going to be in the next of my career or, like, my life. I sort of like lost the ability to enjoy my life or just be happy.” “So I had to leave the U.S. Of course, I expanded my search beyond the U.S. Found a job in Germany.” Joshi packed up her life and started a new role with a European biotech firm in January. “I think I left at a good time, because there would have been more stress. I would have been stuck in a loop.” “It’s an endless cycle of anxiety.” After quitting his job at Amazon, Huang is now back in Taiwan, planning to launch his own company. “To bet on building an A.I. company that gives me complete control over my time, location and future. Staying in the United States is no longer the only way to achieve my American dream.”
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