Goldman Sachs Asset Management is the latest manager to leave the Climate Action 100+ group.
Goldman Sachs Asset Management said, “We’ve made investments in our ability to meet the sustainable investing needs of our clients and remain committed to leveraging our global capabilities,” according to a statement shared with Pensions & Investments.
Goldman Sachs Asset Management had $2.6 trillion in assets under supervision as of March 31.
Reuters first reported the news of Goldman Sachs’ departure.
Managers have come under pressure over environment, social and governance investing in the United States as the issue has become politicized. In late July, Republican leaders from the House Judiciary Committee sent letters to over 130 companies and pension funds demanding answers on how they engage in ESG investing.
A spokesperson for Climate Action 100+ told P&I in a statement that, “The bottom line is that climate risk is a financial risk and must be factored into investment decisions. The ongoing politicization of the initiative is regrettable. Climate Action 100+ will continue to support investors globally as they act on climate-related financial risks and opportunities. We welcome Goldman Sachs’ continuing commitment to maintain its sustainable investing work through its global capabilities and look forward to seeing the ongoing impact of this work.
“Since its launch in 2017, Climate Action 100+ has had a transformative impact in mainstreaming the practice of climate stewardship, as part of a prudent risk management approach undertaken in keeping with investors’ fiduciary duties.”
In recent weeks, Mellon Investments, TCW Group, Aristotle Credit, Aristotle Pacific Capital, Vert Asset Management and Water Asset Management all also departed the initiative. Those moves were first reported by Responsible Investor. The spokesperson for Climate Action 100+ confirmed those six signatories have departed the initiative.
Several other asset managers have departed the group in recent months. AllianceBernstein left the Climate Action 100+ group in May as did Allspring Global Investors. Invesco departed in early March and in February J.P. Morgan Asset Management, State Street Global Advisors, and Pacific Investment Management Co. all left the group.
In February, BlackRock changed its position with the group, transferring its participation to BlackRock International. Vanguard has never been a member.
Climate Action 100+ is “the world’s largest investor-led initiative focused on engaging 170 of the largest corporate greenhouse gas emitters to reduce emissions, improve governance, and strengthen climate-related financial disclosures,” according to a description on its website. The website said the group has 700 global investors across 33 markets.
