Major Asset Managers Exit Climate Action 100+, Exxon Mobil Suing Shareholders
In a significant shift, two major asset managers, State Street and JPMorgan, have left the Climate Action 100+ network within a day. Meanwhile, BlackRock has scaled back its involvement. This comes as Exxon Mobil plans to sue two shareholders for filing climate resolutions, raising concerns about shareholder influence.
The departures of State Street and JPMorgan, along with BlackRock's reduced involvement, have led to over $14 trillion in assets leaving the Climate Action 100+ coalition. This includes the three largest index fund providers. The exits follow a pattern of voting against CA100+ proposals, as noted by Gustave Loriot-Boserup of Compass Insights.
The impact of these exits is debated. While Sam Mahtani of Alpha ESG Consulting argues it should not be overstated, given the remaining signatories, the loss of such large players is notable. Several firms, including the Investor Group on Climate Change (IGCC), Ilmarinen, and Phoenix Group, continue to engage actively.
Exxon's planned lawsuit against Follow This and Arjuna Capital has sparked worry about shareholder rights. Cynthia Hanawalt of the Sabin Center for Climate Change Law warns that this could pose a threat. Keith Guthrie of Cardano and Now: Pensions stresses the importance of alignment on values when selecting a manager for stewardship. Loriot-Boserup suggests investors use their powers and consider split voting solutions due to the divergence between managers and owners.
The exits of State Street and JPMorgan, along with BlackRock's reduced involvement, have significantly impacted the Climate Action 100+ coalition. While the impact is debated, the loss of such large players is notable. Exxon's planned lawsuit against shareholders raises concerns about shareholder influence and rights. Despite these changes, several firms continue to engage actively in climate-related investment strategies and corporate dialogues.
