Goldman Sachs and Others Leave Climate Action 100+ as U.S. Politics Heat Up

Goldman Sachs Asset Management has announced its departure from Climate Action 100+ (CA100+), a prominent climate-focused investor network aimed at engaging companies to reduce greenhouse gas emissions and implement climate transition plans. This move aligns with similar exits by several other investment managers, reflecting increasing political pressure on participants in the United States.

A spokesperson for Goldman Sachs stated, “We’ve made investments in our ability to meet the sustainable investing needs of our clients and remain committed to leveraging our global capabilities.”

Climate Action 100+, launched in 2017, targets the world’s largest corporate greenhouse gas emitters, seeking to improve governance and strengthen climate-related financial disclosures. The network has expanded to include over 700 investors across 33 markets, according to its website. However, CA100+ has become a focal point for anti-ESG politicians, who argue that its members are “boycotting” energy companies. Last year, a group of U.S. Republican state attorneys general sent a letter to large asset managers, warning that participation in groups like CA100+ raised concerns about investors’ fiduciary duties and compliance with antitrust rules.

Recently, Republican leaders on the House Judiciary Committee sent letters in July to 130 CA100+ participants, including Goldman Sachs Asset Management. The letters accused them of “colluding with climate activists through initiatives like Climate Action 100+ to adopt left-wing environmental, social, and governance (ESG)-related goals,” warning of potential violations of U.S. antitrust law.

In a statement accompanying the letters, the House Judiciary Committee asserted, “The Committee continues to examine whether existing civil and criminal penalties and current antitrust law enforcement efforts are sufficient to deter anticompetitive collusion to promote ESG-related goals in the investment industry. The over 130 companies, retirement systems, and government pension programs with membership in Climate Action 100+ must answer for their involvement in prioritizing woke investments over their own fiduciary duties.”

In addition to Goldman Sachs, media reports have indicated that other asset managers, such as TCW and Mellon Investments, who also received letters from the Committee, have exited CA100+. Earlier this year, investors like Invesco, JPMorgan Asset Management (JPMAM), State Street Global Advisors (SSGA), and PIMCO announced their departures, while BlackRock transferred its participation to BlackRock International.

Climate Action 100+’s website includes a response regarding the investors that have left the initiative, stating, “We know that the political pressure some investors are facing in certain markets is pushing investors to carefully consider how to best manage climate risks in their portfolios. However, despite the challenging backdrop in some markets, the initiative has the backing and support from hundreds of investors globally, including asset owners and managers.”

The statement adds that “Climate Action 100+ is a voluntary initiative that investors are free to request to join or withdraw from at any time.”