Climate & Capital Media’s Post

"If 2024 is to become the year of exponential climate action during which the emissions gap (…) begins closing, investors must show they’re on board through their votes." Read Grant Harrison's thoughts on how Large U.S. asset managers can show they’re committed to acting on the clean energy transition. https://lnkd.in/ebNVRCFB Climate & Capital Media Climate Group GreenBiz Group, BlackRock, J.P. Morgan State Street, António Guterres, United Nations, UN Climate Change PIMCO, Lindsey Stewart, CFA, Morningstar, Columbia Business School, The New York Times, Andrew Behar, As You Sow #climate #climatechange #climatetech #climateinvesting #climateinvestment #esg #esginvesting #esgreporting #esgdata #esgstrategy #financialservices #greenfinance #climatefinance

“U.S. asset managers are much more comfortable demanding climate disclosures from companies than specific action.” Read Grant Harrison's thoughts on how Large U.S. asset managers can show they’re committed to acting on the clean energy transition. https://lnkd.in/ebNVRCFB Climate & Capital Media Climate Group GreenBiz Group, BlackRock, J.P. Morgan State Street, António Guterres, United Nations, UN Climate Change PIMCO, Lindsey Stewart, CFA, Morningstar, Columbia Business School, The New York Times, Andrew Behar, As You Sow #climate #climatechange #climatetech #climateinvesting #climateinvestment #esg #esginvesting #esgreporting #esgdata #esgstrategy #financialservices #greenfinance #climatefinance

J.P. Morgan and State Street have left the Climate Action 100+ coalition and BlackRock has downgraded its affiliation with the group, effectively removing US$14 trillion worth of influence from the investor-led climate initiative. A few months ago, the coalition also deplored insufficient progress on corporate climate targets and asked investors to step up engagement with their portfolio companies to push them towards more decisive action. This is perceived as another reflection of growing political division over environmental, social and governance (#ESG) investment in the United States. Our analysis below, including reactions from Brad Lander, Sasja Beslik and Christoph Klein. https://lnkd.in/ddS4GDa8 #SustainableInvestment #ClimateAction #SustainableFunds #FossilFuels #ChiefSustainabilityOfficer

Major #US financial institutions persist in distancing themselves from #Climate action groups. Several questions arise to comprehend this: - Is implementing the promises of those groups challenging for them? - Does it not yield the expected profitability? - Feel free to add your question in the comment as well. #netzero #climateaction #esg #sustainabledevelopment https://lnkd.in/eA-Ja7mt

Climate Solutions take center stage: Global investors shift focus as green investing booms. ESG Today says investors are shifting the focus of their climate investing strategies, with the majority looking to allocate funds to climate solutions and to strategies focused on ‘brown-to-green’ companies. #ClimateAction #SustainableInvesting https://ow.ly/Zbhh50S2Swv

AY, THERE'S THE RUB. I've seen several posts lamenting the withdrawal of two prominent asset managers from Climate Action 100+. The reasons why have gotten a lot less coverage. One stated that it had developed an internal stewardship team of its own, so it no longer needed to be involved with the investor-led climate coalition. The other said that pressuring companies to reduce greenhouse gas emissions was "not consistent with our independent approach to proxy voting and portfolio engagement." Both would like us to know that they're "fully capable of making responsible investment decisions on our own, thank you." Neither said that political pressure influenced their decisions. Are these asset managers outliers? Or does their withdrawal from CA100+ signal the end of collective action and a return to winner-take-all Friedman-esque shareholder management? Fiduciary duty and environmental responsibility should not be viewed as antagonistic goals, but once again we appear to be heading in that direction. Conscience makes cowards of us all. Ay, there's the rub. #Ethics #EthicsMatter #Sustainability #ESG #ClimateChange #CA100+

🌍🌿 Exploring the Shift in Climate Advocacy by Major Asset Managers 🌍🌿 Recent news reveals the biggest US asset managers are exiting Climate Action 100+, or altering their engagement. This pivotal change raises questions about the future direction of sustainable investing and beyond about the real commitment in terms of decarbonization. What do you think ? Are we moving in the right direction towards a better expertise away from the political scene as it was the argument invocated? Are we moving in the right direction towards integrating climate considerations into investment strategies? Share your thoughts on this evolving landscape. #SustainableInvesting #ClimateAction #AssetManagement

In Business Insider's recent article, Samantha Stokes comments on JPMorgan and Pimco's U-turn on environment related pledges after 'years of outspoken support for fighting climate change'. As discussed in recent Icarus Complex Magazine article, 'Green and Blue Bonds: A Closer Look' by Marie-Flore Pirmez, clarity in ESG and green finance is key for achieving climate goals. Seeing Wall Street giants pull back from climate pledges is disappointing. However, in the long term, increased scrutiny from institutions such as Climate Action 100+ is crucial for improving accountability to pledges made and reducing greenwashing. By increasing transparency, customers can be more certain of their green choices and climate goals are more likely to be achieved. To read more: https://lnkd.in/gWcvh3Rt

The politicized nature of climate change in the U.S. and across the world has finally come into question. There is no better time than now to firmly hit that reset button! Quote: “JPMorgan Asset Management and State Street Global Advisors quit a $68 trillion investment group, formed to push the biggest polluters to take action on climate change. BlackRock also distanced itself by transferring membership in Climate Action 100+ to a smaller international arm, the Financial Times reported. These latest high profile defections highlight the politicized nature of climate change in the U.S. Climate Action 100+ was originally formed in 2017 to push "100 of the world's largest corporate greenhouse gas emitters" to align themselves with the Paris Agreement. In 2023, the group announced a new phase intended to push corporate polluters to "move from words to action" by actually cutting down on emissions, among other things. A SSGA spokesperson told Inc. in a statement that "the enhanced Climate Action 100+ Phase 2 requirements for signatories will not be consistent with our independent approach to proxy voting and portfolio company engagement." BlackRock, meanwhile, said the priorities conflicted with its own duty to prioritize clients' economic interests.”

In today’s business world, ESG (Environmental, Social, and Governance) isn’t just a buzzword — it’s at the top of the agenda for every forward-thinking leader and company. 🌱🌍   In the financial world, we have the influence and responsibility to drive change, not just by funding these projects, but by inspiring sustainable action. 💼💡 Yet, it’s concerning to see some top U.S. firms backpedal from their climate pledges and ESG strategies. It’s crucial we lead with integrity and turn our pledges into action. 🚫🔙   For instance, one of the Big Three largest index fund managers and a prominent U.S. bank exited the Climate Action 100+ investment alliance, resulting in the removal of nearly US$14 trillion in total assets from various ESG initiatives. 💸📉   Subsequently, another major U.S. bank's reversal on abstaining from financing coal infrastructure and Arctic oil exploration signals a worrying retraction in ESG commitments. 🏦🔄   The reversal of ESG commitments by major FS firms could have huge implications for the planet's future. Fossil fuel financing from the world's 60 largest banks has soared to US$5.5 trillion in the seven years following the adoption of the Paris Agreement, according to the 2023 Banking on Climate Chaos report. 📈🌪️   The recent reversals, partly influenced by lucrative opportunities in the fossil fuels sector and political pressure, underscore the need for a more nuanced approach. In this challenging scenario, FS firms must reassess their strategies, integrating rigorous risk assessments and aligning commitments with achievable goals. Amidst prevailing challenges, strengthening internal capabilities, fostering transparency and navigating political and regulatory landscapes effectively are imperative for FS firms to drive #longtermvalue in the ESG arena. 💪🔍🌐   #Sustainability #ESG #SDGs #FinancialServices #ClimateAction #NetZero #ParisAgreement https://lnkd.in/gBp9dPGc