The New York State Common Retirement Fund has told TotalEnergies that is considering divesting from the oil major, the Financial Times has reported.
The state’s pension fund is considering the move, the FT is reporting, over the French developer’s decision to scrap two offshore wind leases in the US in exchange for nearly $1bn in refunded lease payments.
TotalEnergies said it would invest a similar amount of money in the development of US fossil fuels.
The deal is currently under investigation by Democrats in the House of Representatives.
The FT reports that in a letter from New York Comptroller Thomas DiNapoli (pictured) to TotalEnergies CEO Patrick Pouyanné, DiNapoli wrote: “As the fund continually evaluates companies based on credible transition plans, portfolio companies’ backtracking may impact the fund’s risk assessment results and proxy voting decisions.”
The administration of Donald Trump has made a similar deal with developer Ocean Winds and its joint-venture partners to scrap a pair of offshore projects off the coasts of California and New York.