JP Morgan and State Street are leaving the Climate Action 100+ investor group

Global financial giants JP Morgan Asset Management and State Street have both left the Climate Action 100+, while BlackRock is scaling back its participation in the investor-led green activist group, according to reports.

Launched in 2017, Climate Action 100+ is an investor-led initiative challenging the world’s largest carbon-emitting public companies to decarbonize, with 170 companies currently selected to participate.

JP Morgan AM joined the initiative in 2020, as did BlackRock and State Street Global Advisors.

However, a spokesperson for JP Morgan AM confirmed it was not renewing its membership Investment week that it had made the decision “in recognition of the significant investments it has made in its investment management team and engagement capabilities, as well as the development of its own climate risk framework over the past few years”.

“The firm has built a team of 40 dedicated sustainable investing professionals, including investment stewardship specialists, who also utilize one of the largest buy-side research teams in the industry,” the spokesperson added . “Given these strengths and the evolution of its own stewardship capabilities, JPMAM has decided that it will no longer participate in the Climate Action 100+ engagements.”

Neither JP Morgan AM nor State Street Global Advisors are still listed as members on the Climate Action 100+ website.

State Street Global Advisors has also chosen not to renew its membership in the initiative, a spokesperson confirmed BusinessGreen.

A spokesperson for the firm said State Street (SSGA) did not want to participate in the next phase of the initiative’s engagement efforts, which aim to encourage polluting companies to not only disclose their emissions, but also reduce them.

“After careful review, State Street Global Advisors has concluded that the enhanced Climate Action 100+ Phase 2 signatory requirements will not be consistent with our independent approach to proxy voting and portfolio company engagement,” SSGA said in a statement. “As a result, we have decided to withdraw from Climate Action 100+.”

Meanwhile, the world’s largest asset manager BlackRock is withdrawing as a corporate member of Climate Action 100+ and transferring its participation in the initiative to its smaller international arm, reports show.

BlackRock said in a note that it has terminated its corporate membership because it believes that Climate Action 100+’s phase two strategy, which takes effect in June, violates U.S. laws that require asset managers to act solely in the economic interest of their customers to act in the long term. according to the Financial times. BlackRock is setting up a new stewardship option that will allow clients, mainly in Europe, to set decarbonization of their investments as part of their investment goals, the paper said.

A version of this article first appeared on Investment Week.

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