Border to Coast Pledges Paris-Aligned Voting as Asset Managers Exit CA100+
Border to Coast Pensions Partnership, managing £58bn in assets, has pledged to support shareholder resolutions aligned with the Paris climate change agreement. Meanwhile, several major asset managers have withdrawn from the Climate Action 100+ (CA100+) initiative, raising concerns about collective action on climate change.
Border to Coast has committed to generally vote in favor of shareholder resolutions that align with the Paris Agreement's goals. This move comes as several prominent asset managers, including State Street and JP Morgan, have withdrawn from CA100+, a global investor initiative focused on engaging with systemically important greenhouse gas emitters to improve their climate change practices.
David Russell, chair of the Transition Pathway Initiative, believes asset managers should collaborate to address systemic climate risks. Faith Ward, chief responsible investment officer at Brunel Pension Partnership, which manages £35bn in assets and is invested with BlackRock and JP Morgan, echoed this sentiment, stressing the importance of collective action on climate. Brunel expressed disappointment with managers who left CA100+.
Border to Coast has also stated that it will vote against the chair of the board if a company fails to meet CA100+'s Net Zero Benchmark for emission reduction targets. BlackRock has limited its CA100+ membership to its international arm, excluding its US business.
The withdrawal of several major asset managers from CA100+ has raised concerns about the fragmentation of stewardship efforts, as noted by Leandros Kalisperas, CIO of West Yorkshire Pension Fund. Despite this, Border to Coast's commitment to supporting shareholder resolutions aligned with the Paris Agreement demonstrates that some asset managers remain dedicated to collective climate change action. The outcome of these strategic shifts will be closely watched as the investment community continues to engage with companies on climate change.
