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IPFS News Link • Central Banks/Banking

JP Morgan Pulls Out Of $68 Trillion "Climate Action 100+" Group

•, by Tyler Durden

That's because mega-bank JP Morgan has officially left a $68 trillion investor coalition that is "focused on pressing the world's biggest emitters of greenhouse gases to decarbonize," according to Bloomberg.

In other words, the "fight" to decarbonize is imploding. 

JP Morgan said it is leaving the Climate Action 100+ because it has "made significant investments in developing its own climate risk engagement framework", the report says. The bank claims to have 40 professionals now focused on sustainable investing. 

And the damage for the Climate Action 100+ may only be getting started. Lance Dial, a Boston-based partner at law firm K&L Gates LLP, told Bloomberg: "I wouldn't be surprised if we see more defections, especially given that there's now a cost, such as potential litigation, that wasn't there when companies joined."

He added: "Attorneys general have subpoenaed firms about their membership of these groups."

The group responded by saying its 700+ members are "committed to managing climate risk and preserving shareholder value through their participation in the initiative."

The bank's involvement in CA100+ was initially seen as a significant step in its ESG investment journey. However, the initiative, alongside its participants, has faced increasing criticism from Republican circles in the U.S., labeling it and similar ESG efforts as politically motivated.

This criticism has led many investment firms to retreat from publicly aligning with net zero commitments and downplay their involvement in climate-focused finance groups, which are now considered more of a political burden than a merit.

Originally, CA100+ aimed to engage major companies like BP, Exxon Mobil, and Glencore in enhancing governance, cutting emissions, and improving climate financial disclosures, the report says. As the initiative enters a more proactive stage, asking members to ensure companies transition from plans to tangible emission reductions, the heightened activist stance poses additional difficulties for investors wishing to keep a lower profile in climate advocacy.