JPMorgan, State Street leave major investor climate group

The investment divisions of JPMorgan Chase and State Street are leaving a climate-friendly investment initiative, sparking cheers from Republicans.

A spokesperson for the group, Climate Action 100+, confirmed via email that “JP Morgan Asset Management and State Street Global Advisors have left the initiative.”

The spokesperson also said BlackRock transferred its participation from its U.S. division to BlackRock International. 

The changes come after the group last summer announced its next phase that would call on participants to “move from words to action” by “taking action to actively reduce greenhouse gas emissions across the value chain.”

JPMorgan spokesperson Kristen Chambers said via email that it was departing “in recognition of the significant investment it has made in its investment stewardship team” and JPMorgan’s development of its own “climate risk engagement framework.”

Chambers added the firm believes “climate change continues to present material economic risks and opportunities to our clients, and our analysts will continue to factor this into engagement with companies around the world.”

In a note shared with The Hill, BlackRock said it was transferring its membership as a result of the coalition’s new goals surrounding decarbonization. 

“In our judgment, making this new commitment across our assets under management would raise legal considerations, particularly in the U.S.,” the note said. 

A spokesperson for State Street Global Advisors told Reuters the group’s new priorities made it harder for the firm to act independently.

Republicans, many of whom have opposed a push towards climate and ethical considerations in investing, cheered the departures.

“Today’s decisions by JPMorgan and State Street are big wins for freedom and the American economy, and we hope more financial institutions follow suit in abandoning collusive ESG actions,” Rep. Jim Jordan (R-Ohio) said in a written statement. 

Nevertheless, the Climate Action 100+ spokesperson touted what it described as ongoing “strong interest” in its efforts. 

“More than 700 investors are committed to managing climate risk and preserving shareholder value through their participation in the initiative,” the organization said. “Last fall alone, more than 60 new signatories joined, and we expect strong interest to continue.” 

The departures follow news earlier this month that Bank of America appeared to scale back previous climate commitments. The bank previously said it would not finance Arctic drilling or new coal projects, but it now states financing for such projects would be subject to escalated review. 

“We have a risk-based process for client transactions. Certain client relationships or transactions that carry heightened risks will continue to go through an enhanced due diligence process involving senior level risk review,” a Bank of America spokesperson said via email.