BlackRock, JP Morgan, and State Street Exit Climate Action 100+, Leaving $14T Gap
BlackRock and JP Morgan Asset Management have withdrawn from the global investor coalition Climate Action 100+ (CA100+), while State Street Global Advisors has also quit. This leaves CA100+ with a significant reduction in total assets, impacting its efforts to tackle climate change.
BlackRock, the world's largest asset manager, has limited its involvement by transferring its participation to its smaller international arm. This move follows the firm's belief that CA100+'s phase two strategy conflicts with US laws requiring money managers to prioritise clients' long-term economic interests. BlackRock International will continue to support the coalition.
JP Morgan's exit is attributed to its substantial investment in its own stewardship team and corporate engagement efforts. Meanwhile, State Street Global Advisors left due to inconsistencies between CA100+'s enhanced phase two requirements and its independent approach to proxy voting and engagement.
The departure of these asset managers removes nearly $14trn of total assets from CA100+, potentially weakening its influence in driving climate action. CA100+ had previously asked its 700 signatories to take stronger action over laggard companies in its phase two plans. The coalition must now adapt to continue its mission with reduced resources.
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