Source: AFP
A pair of major investment firms with nearly $7 trillion in assets said Thursday they have pulled out of an investor climate change initiative that aims to pressure companies to quickly cut carbon emissions.
JPMorgan Asset Management, which manages $3.1 trillion in assets, has not renewed its membership of the Climate Action 100+, saying through a spokesman that it will oversee its climate change management with companies with its banking staff.
A second large asset manager, State Street Global Advisors, with $3.7 trillion, also pulled out, saying Climate Action’s approach “would not be consistent with our independent approach to proxy voting and holding company participation ,” according to a statement.
BlackRock, the world’s biggest asset manager, is also scaling back its work with the group, a spokesman confirmed.
Climate Action 100+, launched in 2017, aims to work with companies to halve greenhouse gas emissions by 2030 through governance reforms, eliminating emissions through the value chain and improved disclosure. Its site has $68 trillion in assets under management.
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The moves come as Republican officials in Washington and some state governments criticize financial firms for prioritizing climate change, in some cases blocking the companies from government contracts.
Texas Attorney General Ken Paxton applauded the news, saying financial firms had undertaken an “illegal” campaign to impose environmental, social and corporate governance on customers.
“I am delighted that JPMorgan has withdrawn from the Climate Action 100+,” Paxton told X, formerly Twitter. “This is a critical step in making customers’ financial well-being a priority.”
JPMorgan said that in light of its 40 “dedicated sustainable investment professionals” and other staff, the asset manager “has decided that it will no longer participate in Climate Action 100+ commitments,” according to a company statement.
“We believe climate change continues to present significant financial risks and opportunities to our clients, and our analysts will continue to factor this in with companies around the world.”
Source: AFP