Invesco has become the latest asset manager to withdraw from the Climate Action 100+ coalition, joining the ranks of J.P. Morgan Asset Management, State Street Global Advisors, Pacific Investment Management Co.
According to Pensions and Investments, with a formidable $1.59 trillion under management as of January, Invesco’s departure is notable not just for its scale but for the rationale behind the decision. “As we believe our clients’ interests in this area are better served through our existing investor-led and client-centric issuer engagement approach,” an Invesco spokesperson articulated, shedding light on the firm’s commitment to direct climate engagement strategies that resonate more closely with its client base.
This series of departures from the Climate Action 100+, an investor coalition that has been at the forefront of engaging companies on climate change, marks a pivotal moment in the landscape of financial activism.
The coalition, coordinated by five major investor networks including the Asia Investor Group on Climate Change and Ceres, has been instrumental in pushing for greater climate risk disclosure and the implementation of climate transition plans among the world’s largest polluters.
Despite Invesco’s exit, a spokesperson for Climate Action 100+ confirmed that the coalition remains robust, with over 700 investors globally continuing their involvement and more than 60 new investors joining since June 2023 – a testament to the enduring appeal and critical importance of investor-led climate action.
This development comes at a time when Climate Action 100+ is intensifying its efforts, shifting focus from mere disclosure of climate risks to the actual implementation of climate transition plans across the 170 companies it engages with. This strategic pivot underscores the evolving nature of investor activism in the climate arena, aiming not just for awareness but for actionable change.
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