FILE - NY Thomas DiNapoli 1-1-2019

New York State Comptroller Thomas DiNapoli delivers his address Jan. 1, 2019, after taking his oath of office on Ellis Island in New York harbor.

(The Center Square) – Several major oil companies, including Marathon Oil, ConocoPhillips and Hess, could have their stocks or other investment vehicles tied to those companies banned from one of the largest public pension plans in the country. That’s according to a statement this week from New York State Comptroller Thomas DiNapoli.

The New York State Common Retirement Fund will determine whether more than 40 shale oil and gas producers are in a position to do business in a “low-carbon economy.” Companies that aren’t will be added to a list of “restricted investments.” That means the fund will not buy or directly own any debt or equity securities.

Any current positions in those firms would be sold.

“Shale oil and gas companies face significant economic, environmental and regulatory challenges,” he said. “We will carefully review these companies and may restrict investments in those that do not have viable plans to adapt.”

The fund, which contained assets valued at $254.8 billion as of March 31, is the third-largest public pension plan in the country.

DiNapoli, who serves as the trustee for the fund, created a plan two years ago to determine the fund’s investment risks associated with climate change. The goal is to move the fund’s portfolio to investments resulting in zero greenhouse gas emissions.

Last year, the fund began a review of coal companies and found 22 that were not prepared and subsequently excluded for investment of public funds. The review, conducted annually, looks at companies that get 10 percent of revenues from thermal coal mining.

The latest reviews added New Hope Corp., PT Indo Tambangraya Megah Tbk, Semirara Mining and Power Corp., Shanxi Coking Coal Energy Group Co. and Whitehaven Coal Ltd. to that list.

The fund directly holds investment assets of about $1.8 million in those five companies. According to DiNapoli’s statement, the holdings would be sold in a “prudent manner and timeframe.”

In April, the fund announced it included seven oil sands companies to the list after the fund’s review determined they were not ready for a greener economy. Holdings in those companies accounted for about $7 million of the fund.

In this new round of reviews, the fund identified 42 companies that generate at least 10 percent of their revenues from oil and gas production from shale.

Those companies received a notice from the fund seeking information on their emission-reduction initiatives.

Information on those policies is due in 60 days.