Pimco, BlackRock, State Street, JP Morgan All Beating Hasty Retreat From Climate Goals, Participation

[hatrack]

Way to go, you bold, visionary leaders!!!

Political and regulatory pressure seems to have taken its toll. Four U.S. financial juggernauts (JPMorgan, BlackRock, State Street and Pimco), which hold trillions of dollars in assets, have withdrawn or reduced their involvement in Climate Action 100+, the biggest coalition of investors and large companies vying to curb emissions and combat global warming. “Opinions on sustainability or ESG practices, particularly those related to climate issues, have become political issues, which can heighten reputational risks,” State Street said in its annual report, submitted this week to the U.S. Securities and Exchange Commission (SEC). “They are bowing to climate change deniers,” says one Democratic official.

Sustainable investment criteria, or ESG — which stands for ‘environmental, social and governance’ — are at the heart of an ideological and political tussle in the United States. Republicans have ramped up pressure against these criteria on several fronts. The latest proposal, in the New Hampshire state legislature, was to criminalize them in some cases. The initiative has been rejected, but some states are vetoing management firms that apply them and there is also pressure from Congress.

The chairman of the House Judiciary Committee, Jim Jordan, and two other Republicans sent letters to State Street, BlackRock and Vanguard executives, requesting explanations of their ESG practices. In the letters, the congressmen suggested that the companies were violating U.S. antitrust law by coordinating and entering into collusive agreements to “decarbonize” assets being managed and reduce emissions to net zero. Membership in groups such as Climate Action 100+ was particularly in focus. Some 700 investors belong to this organization, but these four giants accounted for $14 trillion, approximately 20% of the total.

The withdrawal of the financial leaders does not imply that the companies are abandoning the fight against climate change, but rather that they are disassociating their actions from the guidelines laid down by the group. Last year, Climate Action 100+ established new, stricter guidelines aimed at making investors more active in their efforts to reduce emissions. The entities claim that by withdrawing they intend to maintain their autonomy and independence of decision making in relation to the companies.

EDIT

https://english.elpais.com/economy-and-business/2024-02-19/four-us-financial-giants-retreat-on-climate-action-amid-political-pressure.html

[2naSalit]

1. ...