Updated February 23rd, 2024 at 00:06 IST

Climate investor group eyes garnering support after US exits

Climate Action 100+ was hit by the withdrawal of the fund arms of State Street and JPMorgan.

Reported by: Business Desk
Climate investor group | Image:Unsplash
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Green movement globally: The biggest climate investor group in the entire globe has informed members that its approach does not breach US antitrust and securities laws. This information has been shared in an emailed letter, seeking to shore up support days after the shock exit of several large firms.

Climate Action 100+ was hit by the withdrawal of the fund arms of State Street and JPMorgan last week, and bond giant Pimco, while the world's asset manager BlackRock scaled back its involvement. The group envisages to help facilitate more effective engagement with high-emitting companies to help them transition to a low-carbon economy. The members have been accused of colluding by some US Republican politicians, potentially in breach of the law.

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BlackRock and State Street highlighted the importance of independence when confirming their steps, while JPMorgan said it would rely on its own stewardship capabilities. PIMCO said participation was "no longer aligned" with its approach.

One of the five investor networks coordinating CA100+, in a communique to members, said the Principles for Responsible Investment (PRI), urged members to stand firm despite the departure of what it described as "a small number of members", and addressed legal concerns.

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"The PRI designs and facilitates initiatives in a way that we believe enables investors to maintain compliance with rules and regulations in key markets, including anti-trust and securities laws in the USA," its Chief Executive David Atkin wrote.

"For instance, no initiative ever requires a signatory to vote in a certain way, even for votes or resolutions that fellow investors have put forward or flagged. Collaborative engagements with companies are always investor-led and always voluntary."

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Atkin said the collaboration could help make engagements with companies on issues such as climate change more effective, thereby better managing the risks associated with the transition to the benefit of asset managers' clients. "Such efforts can help identify more effective and efficient methods of engagement, reducing investors' costs and increasing the likelihood of investors achieving their objectives, while maintaining investors' independence as fiduciaries," he wrote. 

(With Reuters inputs) 

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Published February 23rd, 2024 at 00:06 IST