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.”
IN CASE YOU MISSED IT
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.”
Thanks for reading! We’ll see you Monday.
We’d like your feedback. Please email thoughts and suggestions to dealbook@nytimes.com.
Business
FCC takes aim at talk shows in fight over ‘equal time’ rules for politicians
The Federal Communications Commission is taking aim at broadcast networks’ late-night and daytime talk shows, including ABC’s “The View,” which often feature politicians as guests.
On Wednesday, the FCC’s Media Bureau issued a public notice saying broadcast TV stations would be obligated to provide equal time to an opposing political candidate if an appearance by a politician falls short of a “bona fide news” event.
For years, hosts of “The View,” ABC’s “Jimmy Kimmel Live!” and CBS’ “The Late Show with Stephen Colbert,” have freely parried with high-profile politicians without worrying about being subjected to the so-called “equal time” rule, which requires broadcasters to bring on a politician’s rival to provide balanced coverage and multiple viewpoints.
With the new guidance, the FCC appears to take a dim view of whether late-night and daytime talk shows deserve an exemption from the “equal time” rules for stations that transmit programming over the public airwaves. The move comes amid FCC Chairman Brendan Carr’s campaign to challenge broadcast networks ABC, CBS and NBC in an effort to shift more power to local broadcasters, including conservative-leaning television station groups such as Nexstar Media Group and Sinclair Broadcast Group.
Since becoming chairman of the FCC a year ago, the President Trump appointee has been critical of CBS, NBCUniversal and Walt Disney Co. He launched investigations into Disney and Comcast’s diversity hiring practices and reopened a “news distortion” probe into CBS’ edits of a 2024 “60 Minutes” interview with then-Vice President Kamala Harris after Trump sued the network for more than $10 billion.
Carr withheld approval of CBS parent Paramount’s sale to billionaire scion David Ellison’s Skydance until after Paramount agreed to pay Trump $16 million to settle the suit, which several legal observers had deemed frivolous.
During a social media storm over Kimmel’s comments in the wake of the killing of conservative activist Charlie Kirk in September, Carr suggested the FCC might use its regulatory hammer over ABC parent Walt Disney Co. if the Burbank giant failed to take action against Kimmel. “We can do this the easy way or the hard way,” Carr said at the time.
The FCC oversees television station broadcast licenses, and those stations have obligations to serve the public interest.
On Wednesday, the FCC rolled out the new guidance aimed at late-night talk shows and “The View,” saying there’s a difference between a “bona fide news interview” and partisan politics.
“A program that is motivated by partisan purposes, for example, would not be entitled to an exemption under longstanding FCC precedent,” the Media Bureau said in its unsigned four-page document.
The bureau encouraged broadcasters to seek an opinion from the FCC to make sure their shows were in compliance — an advisory that will likely raise anxiety and potentially prompt some TV station groups to scrutinize shows that delve deeply into politics.
ABC, CBS and NBC declined to comment.
Since Trump returned to the White House a year ago, the FCC has stepped up its involvement in overseeing content — a departure from past practice.
Trump has made no secret of his disdain for Kimmel, Colbert, NBC comedian Seth Meyers and various hosts of “The View.”
Recently, “The View” featured former U.S. Rep. Marjorie Taylor Greene, once a Trump acolyte who has become a fierce critic of the president.
Daniel Suhr, president of the conservative Center for American Rights, applauded the FCC move in a statement.
“This important action puts Hollywood hosts and network executives on notice — they can no longer shower Democrats with free airtime while shutting out Republicans,” Suhr said. The organization has lodged several complaints with the FCC about alleged media bias.
Anna M. Gomez, the lone Democrat on the three-person commission, quickly blasted the move.
“For decades, the Commission has recognized that bona fide news interviews, late-night programs, and daytime news shows are entitled to editorial discretion based on newsworthiness, not political favoritism,” Gomez said. “This announcement therefore does not change the law, but it does represent an escalation in this FCC’s ongoing campaign to censor and control speech.”
“The 1st Amendment does not yield to government intimidation,” she said. “Broadcasters should not feel pressured to water down, sanitize or avoid critical coverage out of fear of regulatory retaliation.”
The precedent was established in 2006, when the FCC determined that then-NBC late-night host Jay Leno’s “Tonight Show” interview with actor Arnold Schwarzenegger, who announced his bid for California governor, was a “bona fide” news event, and thus not subject to the FCC rule.
The FCC said that station groups need not rely on that 2006 decision because the agency “has not been presented with any evidence that the interview portion of any late night or daytime television talk show program on air presently would qualify” for such an exemption.
The FCC’s guidance does not apply to cable news programs — only shows that run on broadcast television, which is subject to FCC enforcement actions.
Business
Fight over L.A. County’s oldest cafe boils over in trademark claims, court filings
After the longest-operating cafe in L.A. County announced in late December that it would shut down after 139 years, customers of the Original Saugus Cafe began buying up its branded hats, T-shirts, mugs and other merchandise.
When the merch sold out, some took to filching from the tables: glassware, salt and pepper shakers, and even utensils.
To Jessie Mercado, 31, and her father, Alfredo — who has owned the beloved cafe in Santa Clarita for 30 years — it was amusing and sweet that many held the establishment so close to their hearts that they wanted to take pieces of it home with them.
A sign posted to the Saugus Superette, the liquor store adjacent the Original Saugus Cafe, promises the reopening of the restaurant.
(Jenn Harris / Los Angeles Times )
But a property manager who took over handling their lease in recent months saw it differently. He left an angry voicemail for her 59-year-old father, reviewed by The Times, telling him to “get the Godd— s— back,” or he would sue.
Customers of the Original Saugus Cafe didn’t have long to mourn the loss of the landmark. The restaurant, which closed on Jan. 4, has already reopened under new management. Meanwhile, behind the scenes, a dispute over the cafe’s ownership has boiled over into a lawsuit as the Mercados insist that they were pushed out.
For decades, Mercado’s father said he had a friendly relationship and verbal lease agreement with the property owner, Hank Arklin Sr., a former state Assembly member who owned several commercial spaces in the area.
But difficulties arose after Arklin died at the age of 97 in August, the Mercados said, and they began dealing with Larry Goodman, who handles properties on behalf of the Arklin family’s company, North Valley Construction.
The Mercados alleged in a lawsuit filed last week that Goodman, North Valley Construction and Arklin’s wife, Louise, had treated the family poorly, tainted the brand, ignored their legal claim to the business and equipment so they would abandon the restaurant.
Despite the ongoing legal challenge, the cafe reopened on Monday at 5 a.m. under new owner Eduardo Reyna and with a slightly different name: Saugus Restaurant. Much of the furniture appears to have remained the same, along with menu items and even some of the employees.
People wait in line to eat at the Original Saugus Cafe during what was thought to be its last day of business after nearly 140 years in Saugus.
(Juliana Yamada / Los Angeles Times)
“People think we lied to them [about shutting down]. That it was a publicity front. I want them to know we were scammed into this,” Mercado said. “It’s sad it had to go down this way.”
Steffanie Stelnick, an attorney representing the Mercados, said that for the new owner and landlord “to open up and run [the cafe] in the same location, representing it as the same business without purchasing it or without permission” is effectively stealing.
Stelnick said she planned to amend the lawsuit to include Reyna.
Reyna did not respond to a phone call request for comment.
Goodman did not respond to multiple phone calls and messages from The Times requesting comment. Louise Arklin also did not respond to requests for comment.
But earlier this month in an interview with the Santa Clarita Valley news outlet the Signal, Goodman disputed that the Mercado family owned the business and said the father had wavered about keeping the restaurant going.
“They don’t have nothing to sell. I own everything,” Goodman said. “We own the cafe. We own the building. The stove. The dishes. The forks. We own everything in there.”
The cafe, in a long, narrow building, was beloved by Santa Clarita residents and was locally renowned for its long-running operation, its cameos in various films and television shows, and visits by Hollywood stars such as Frank Sinatra and John Wayne.
Mercado said her family hadn’t wanted to close. They wanted to continue supporting the 17 employees who worked there. But, she said, they entertained the possibility of selling the business if the right offer came along. Dealings with Goodman, however, had felt hostile and left her father feeling “humiliated” and like they had no option but to leave.
A sign on the door posted in late December announced the cafe’s closure, noting that the “decision was not made lightly.”
On its last day of operation, the line stretched down the block. Among customers saying their goodbyes was Charlane Glover, who shared countless Sunday morning breakfasts with her husband there before his death.
“I can’t imagine it being gone,” said Glover, who waited for over an hour for a table for her and her granddaughter. “We are losing all of our history.”
Mercado’s father got a shock the next morning, his daughter said, when he arrived to pack up only to find the locks had been changed and a sign posted saying the cafe would be “reopening under new ownership soon!”
Alfredo Mercado had started at the restaurant busing tables and washing dishes, she said, working his way up the ladder to bartender and cook positions to eventually acquire ownership of the cafe and its name in 1998. Her father is the sole name listed on the LLC.
Stelnick, the family’s attorney, wrote in a Jan. 6 cease-and-desist letter to Goodman that he made a “wrongful attempt” to take her client’s business and that his alleged “ongoing threats and force have already caused significant damage.”
The Mercados filed suit Jan. 14 in Los Angeles County Superior Court and are pursuing damages — including the taking of their personal property — of at least $500,000.
The complaint alleges that, in August after Arklin’s death, Goodman pressured Mercado’s father to sign a lease that stated that, in addition to the premises, all manner of appliances and utensils were under the purview of the rental agreement — including “kitchen equipment, booths, counters, stools, chairs, registers, utensils, pots, plates, cutlery, and other cooking & mechanical systems” — even though the Mercados had purchased and maintained those items, the lawsuit argued. Goodman, the lawsuit alleged, had indicated the Mercados would not be able to remain on the property as tenants if they did not sign.
At the end of August, the Arklin family’s company, North Valley Construction, submitted trademark applications for the names “Saugus Café,” “The Original Saugus Café” and “Saugus Café1.”
The lawsuit said the filing of applications showed the property owner was pursuing a “confusingly similar” name and that infringement on the Mercados’ business was thus “willful, deliberate, and malicious.”
Mercado said her father hadn’t acted sooner because he didn’t understand the extent of his claim over the business.
“We just didn’t know our rights,” Mercado said.
Staff photographer Juliana Yamada contributed to this report.
Business
Helped by ‘Stranger Things’ finale, Netflix lands strong fourth quarter
Netflix reported a strong finish to its fiscal year Tuesday, with revenue climbing 18% in the fourth quarter to just over $12 billion compared with a year ago.
The streaming giant’s profits during the same period reached $2.4 billion, or 56 cents a share, up from $1.87 billion, or 43 cents a share, a year earlier, the company reported.
The results were slightly ahead of Wall Street estimates and driven by growth in the company’s advertising business, higher prices and increases in paid memberships, which surpassed the 325-million mark, Netflix said in a letter to shareholders.
Netflix said total engagement on its platform, meaning the amount of time its users spent watching content, rose 2% in the second half of the year.
The company got a big boost in the quarter from the final season of its hit series “Stranger Things,” among other popular shows, documentaries and movies, including Guillermo del Toro’s “Frankenstein” and “Wake Up Dead Man: A Knives Out Mystery.”
Netflix said “KPop Demon Hunters” broke records as its most-watched movie with 482 million views in the last half of 2025. Users wanted to sing along with “KPop Demon Hunters Lyric Videos,” which scored 32 million views.
The streamer’s top series was the second season of “Wednesday,” which pulled in 124 million views. The first season of the series also popped with 47 million more.
For the year, the Los Gatos-based company reported revenue of $45.2 billion, up 16% from 2024.
The latest earnings report follows news earlier Tuesday that Netflix modified its offer to buy Warner Bros. Discovery, making it an all-cash bid. The companies agreed on the deal, valued at $82.7 billion, in December.
The agreement between the most successful streaming platform and the storied movie studio behind “Casablanca,” Harry Potter and “Batman” has its share of supporters and detractors. Netflix shares have been on a decline since the December announcement.
“Investors will ponder whether Netflix becoming HBO faster than HBO became Netflix serves their interest,” said Emarketer senior analyst Ross Benes. “So far, markets have not responded kindly to the acquisition.”
Rival bidder Paramount has made clear it will continue its hostile takeover attempt for Warner Bros., despite some setbacks. It has given the company’s investors a Jan. 21 deadline to tender their shares. It remains to be seen whether Paramount opts to extend that deadline.
Warner Bros. has rejected Paramount’s overtures multiple times in recent months, while expressing its preference for its deal with Netflix.
The results were released after markets closed. Netflix shares ended the day at $87.05, down 1% on Tuesday.
Times staff writer Meg James contributed to this report.
-
Sports4 days agoMiami’s Carson Beck turns heads with stunning admission about attending classes as college athlete
-
Detroit, MI1 week agoSchool Closings: List of closures across metro Detroit
-
Culture1 week agoTry This Quiz on Myths and Stories That Inspired Recent Books
-
Lifestyle1 week agoJulio Iglesias accused of sexual assault as Spanish prosecutors study the allegations
-
Education1 week agoVideo: Lego Unveils New Smart Brick
-
Pittsburg, PA3 days agoSean McDermott Should Be Steelers Next Head Coach
-
Education1 week ago
How a Syrian Hiking Club Is Rediscovering the Country
-
Sports2 days agoMiami star throws punch at Indiana player after national championship loss