(New York) The asset management subsidiary of the American bank JPMorgan Chase has withdrawn from the climate change coalition Climate Action 100+, a spokesperson told AFP on Thursday.
The American asset manager State Street also responded that it had done the same, confirming information initially reported by the Financial Times daily.
JPMorgan Asset Management and State Street were among nearly 700 signatories from the financial sector who pledged to raise awareness among the highest carbon-emitting companies about their role in climate change.
To justify its decision, JPMorgan AM explained that it now has teams dedicated to responsible investment, able to analyze the profile of each company in which it can potentially invest money.
This disengagement comes as Climate Action 100+, founded in 2017, decided, in June, to move on to the second phase of its action, which must now exert pressure on companies with the highest carbon emissions.
State Street considered, in a statement sent to AFP, that these commitments contravened the principle of independence of decision, because it is a coordinated action.
The subject of environmental and social criteria has become a battleground for some Republicans.
They believe that taking climate change into account in investment decisions goes against the long-term interests of clients.
Several Republican states have adopted texts allowing them to do without the services of companies using environmental criteria in their investment decisions.
In a statement sent to the Financial Times, the world’s largest asset manager, BlackRock, announced its withdrawal from Climate Action 100+, because its strategy is in violation of US laws.
The latter require, according to the financial company, managers to act only in the long-term interests of clients.
This interpretation is contested by many specialists, academics and business leaders.
Asked by AFP, BlackRock confirmed that its activity within Climate Action 100+ would now be limited to its subsidiary BlackRock International.
This is a turnaround for the asset manager, whose CEO, Larry Fink, has spoken publicly several times in recent years to defend the consideration of climate change in investment decisions.