JPMorgan Asset Management (JPMAM) has withdrawn from Climate Action 100+, a climate-focused investor network focused on engaging with companies to reduce their greenhouse gas emissions and implement climate transition plans.
According to a statement from a JPMAM spokesperson, the company's decision follows the development of its internal engagement capabilities, allowing the company to act on its own.
The spokesperson said:
“JP Morgan Asset Management (JPMAM) is not renewing its membership in Climate Action 100+ in recognition of the significant investment it has made in its investment management team and engagement capabilities, as well as in the development of its own framework of involvement in climate risk over the last two years.”
Launched in 2017, Climate Action 100+ is an investor initiative that targets the world's largest corporate greenhouse gas (GHG) emitters to promote necessary action on climate change and align their business strategies with net zero in order to help limit the global average temperature. rise to 1.5 degrees Celsius. The network has grown to include more than 700 investors representing more than $68 trillion in assets.
The group, however, has also become a key target for anti-ESG politicians, fueling allegations that its members are “boycotting” energy companies. Last year, a group of US Republican attorneys general sent a letter to large asset managers warning that participation in groups like CA100+ raised concerns about investors' adherence to fiduciary duties and compliance with antitrust rules.
Similarly, Texas cited participation in Climate Action 100+ as part of the criteria used by the state to compile a list of “Financial Companies Boycotting Energy Companies,” which it cited in its placement of a number of asset managers for divestment. .
JPMorgan Asset Management listed climate change as one of its top six investment management priorities, showcasing the most significant risks and opportunities for its investments, and the company was involved in more than 780 climate-focused engagements in 2022.
In the statement, the spokesperson said:
“The company has built a team of 40 professionals dedicated to sustainable investing, including investment management experts who also have one of the largest buy-side research teams in the industry.
“Given these strengths and the evolution of its own management capabilities, JPMAM has determined that it will no longer participate in Climate Action 100+ commitments.”
