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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

"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

Do investors care about climate?    In a year that saw billions in net outflows from ESG-related investments and media coverage suggesting the death of ESG and sustainable investing, what on earth do investors really want? - Do they expect companies to act on climate?  - Do they see climate as an investment opportunity?  - Do they consider climate risk when making investments? We set out to find some answers—and we’re pleased to share some of our research findings on Harvard Business Review.org. Check out this thought-provoking piece by our own Michael Maslansky and Will Howard.    Feeling stuck on how you can communicate your climate initiatives with confidence? Contact us for a consultation, assessment, or presentation.    https://lnkd.in/gyX3VxjT

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.”

JPMorgan, State Street leave climate group, BlackRock limits its involvement On Thursday, the investment divisions of JPMorgan Chase and State Street (SSGA) withdrew from a worldwide investor coalition, Climate Action 100+ (CA100+), which encourages companies to reduce emissions harmful to the climate, according to Reuters. https://bit.ly/3UIWYmJ CA100+ is an investor-led initiative aimed at ensuring the world’s largest corporate greenhouse gas emitters take necessary action on climate change. The initiative involves over 700 investors, representing $68 trillion in assets, and focuses on 170 companies. https://bit.ly/3uBbhPA Meanwhile, BlackRock announced that it has shifted its membership to its international division, thereby reducing its participation. This move effectively withdraws nearly $14 trillion in total assets from initiatives aimed at coordinating Wall Street’s response to climate change. This decision was made following CA100+'s request for its signatories to take more robust action. Financial institutions have been increasingly scrutinized by Republican politicians for their involvement in such groups, with allegations that such collective action could violate antitrust laws or fiduciary duties. However, none of the companies mentioned politics as a factor in their decisions. A representative for SSGA, which oversees $4.1 trillion, expressed that the new objectives outlined by CA100+ jeopardize its capacity to operate autonomously. These objectives, implemented last June, require CA100+ signatories to interact with policymakers and some to disclose details of their discussions with companies to achieve the target of net-zero emissions by 2050. However, State Street spokesperson Randall Jensen stated that these changes do not align with their independent approach to proxy voting. JPMorgan’s fund division chose not to renew its CA100+ membership after enhancing its own investment stewardship capabilities, according to The Financial Times. https://bit.ly/48gQ5w5 (pay wall). The division manages $3.1 trillion. BlackRock announced that it has transferred its CA100+ membership to BlackRock International. The company emphasized its commitment to acting independently on behalf of its clients when it joined CA100+ in 2020. This includes deciding which issuers to engage with and how to vote proxies. It also plans to introduce a new engagement and proxy voting option to allow clients to prioritize climate objectives. BlackRock’s decision effectively removes $6.6 trillion, or two-thirds of its total assets, from the pool represented by CA100+. Despite the departure of these large asset managers, Kirsten Spalding, Vice President of the Ceres Investor Network, which supervises CA100+'s North American initiatives, said the group anticipated some signatories would leave following the adoption of its new objectives. She affirmed that the group would persist with its efforts, according to Reuters. #climatecrisis #investment

JPMorgan, State Street leave climate group, BlackRock limiting its involvement On Thursday, the investment divisions of JPMorgan Chase and State Street (SSGA) withdrew from a worldwide investor coalition, Climate Action 100+ (CA100+), which encourages companies to reduce emissions harmful to the climate, according to Reuters. https://bit.ly/3UIWYmJ CA100+ is an investor-led initiative aimed at ensuring the world’s largest corporate greenhouse gas emitters take necessary action on climate change. The initiative involves over 700 investors, representing $68 trillion in assets, and focuses on 170 companies. https://bit.ly/3uBbhPA Meanwhile, BlackRock announced that it has shifted its membership to its international division, thereby reducing its participation. This move effectively withdraws nearly $14 trillion in total assets from initiatives aimed at coordinating Wall Street’s response to climate change. This decision was made following CA100+'s request for its signatories to take more robust action. Financial institutions have been increasingly scrutinized by Republican politicians for their involvement in such groups, with allegations that such collective action could violate antitrust laws or fiduciary duties. However, none of the companies mentioned politics as a factor in their decisions. A representative for SSGA, which oversees $4.1 trillion, expressed that the new objectives outlined by CA100+ jeopardize its capacity to operate autonomously. These objectives, implemented last June, require CA100+ signatories to interact with policymakers and some to disclose details of their discussions with companies to achieve the target of net-zero emissions by 2050. However, State Street spokesperson Randall Jensen stated that these changes do not align with their independent approach to proxy voting. JPMorgan’s fund division chose not to renew its CA100+ membership after enhancing its own investment stewardship capabilities, according to The Financial Times. https://bit.ly/48gQ5w5 (pay wall). The division manages $3.1 trillion. BlackRock announced that it has transferred its CA100+ membership to BlackRock International. The company emphasized its commitment to acting independently on behalf of its clients when it joined CA100+ in 2020. This includes deciding which issuers to engage with and how to vote proxies. It also plans to introduce a new engagement and proxy voting option to allow clients to prioritize climate objectives. BlackRock’s decision effectively removes $6.6 trillion, or two-thirds of its total assets, from the pool represented by CA100+. Despite the departure of these large asset managers, Kirsten Spalding, Vice President of the Ceres Investor Network, which supervises CA100+'s North American initiatives, said the group anticipated some signatories would leave following the adoption of its new objectives. She affirmed that the group would persist with its efforts, according to Reuters. #climatecrisis #investment

"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

Accepted paper: What is the role of #InstitutionalInvestors in the fight against #ClimateChange? In this article, Thea Kolasa & Zacharias Sautner explain the institutional context, provide evidence highlighting institutional investors' bright and dark sides in this fight, and develop multiple ideas for future research. They particularly show that climate change has a significant impact on institutional investors. Simultaneously, they demonstrate that institutional investors can have a significant positive impact on fighting climate change, particularly if they actively engage with portfolio firms to reduce carbon emissions.   #CGIRjournal #CorpGov #ESG #Greenwashing #ClimateRisks #OpenAccess https://lnkd.in/gXwqdHBz

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

This is a detailed discussion of the impact institutional investors can have on businesses related to climate change.