Goldman Sachs Asset Management (GSAM) has officially withdrawn from the Climate Action 100+ initiative, a move echoed by several other US-based asset managers following a wave of concern spurred by US political figures.
According to Environmental Finance, in a significant industry shift, GSAM’s departure aligns with recent exits by notable firms such as Mellon, Vert Asset Management, and Water Asset Management, highlighting a growing trend of reevaluation within the sector.
A spokesperson for GSAM emphasised the company’s ongoing commitment despite the exit, stating, “We’ve made investments in our ability to meet the sustainable investing needs of our clients and remain committed to leveraging our global capabilities.” This statement underlines GSAM’s focus, as the firm has already channelled $555m towards a 10-year, $750m Sustainable Finance investment goal.
The backdrop to these departures involves a contentious letter from US Republican Party politicians, who have raised concerns that the collaborative efforts under Climate Action 100+ might breach US antitrust laws. This has prompted a reassessment of involvement by various asset managers, with others like Brandywine Global and Western Asset Management also stepping back in recent times.
Amid these shifts, some of the largest financial institutions, including State Street Global Advisors, JP Morgan, PIMCO, and Invesco, have similarly moved away from the initiative in recent months. This collective step back marks a significant moment in the finance sector’s engagement with climate activism and raises questions about the future direction of environmental stewardship among major investors.
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