· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The New York Times or enjoy below:
🗞️ Driving the news: BlackRock, JPMorgan Chase, and State Street are withdrawing or reducing their involvement with Climate Action 100+, an influential global investment coalition advocating for corporate decarbonization
• This move represents a significant retreat from efforts to leverage Wall Street's influence for climate action, involving a collective departure of approximately $14 trillion
🔭 The context: Climate Action 100+ has been a pivotal organization in pushing companies towards decarbonization
• The recent shift by these financial giants has sparked a political backlash, with accusations of succumbing to pressure from right-wing politicians and compromising on climate commitments
• However, these companies assert their ongoing dedication to sustainable investing, with JPMorgan building an in-house team and BlackRock maintaining certain affiliations with the coalition
🌍 Why it matters for the planet: The withdrawal of these major financial institutions from Climate Action 100+ signals a significant setback for climate advocacy within the investment community
• It raises concerns about the financial sector's commitment to environmental sustainability and the impact this could have on global efforts to combat climate change
⏭️ What's next: The future of corporate climate activism faces uncertainty as major players reassess their strategies amidst political and legal pressures
• This development may influence the broader investment community's approach to environmental issues, potentially hindering progress towards decarbonization targets
💬 One quote: "State Street said the new priorities compromised its 'independent approach to proxy voting and portfolio company management.'" — State Street, on its decision to leave Climate Action 100+
📈 One stat: Nearly $14 trillion - The total assets under management by BlackRock, JPMorgan Chase, and State Street that are exiting or scaling back involvement with Climate Action 100+
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