Nuveen has recently exited the global stewardship coalition Climate Action 100+. The $1.1 trillion asset manager, a major investor in renewable energy, farmland, and timberland, is owned by TIAA (The Teachers Insurance and Annuity Association).
A spokesperson for the company informed a media outlet that “after careful consideration and as a result of an ongoing rigorous governance review process, Nuveen has ended its membership with Climate Action 100+. We are fully committed to responsible stewardship, engagement on climate-related issues with investee companies, mitigating risk across asset classes, and helping our clients meet their climate-related investment goals.”
While Nuveen did not provide specific reasons for its departure, this move follows similar exits by other major asset managers, including Goldman Sachs Asset Management, Vanguard, and State Street earlier this year.
This development comes as the US House Judiciary Committee, led by Republican Chairman Jim Jordan, sent letters to 130 financial organisations, including Nuveen and Goldman Sachs Asset Management, accusing them of participating in a “woke ESG cartel” due to their involvement in CA100+.
The letter targeted prominent US investment managers and major asset owners like CalPERS, CalSTRS, and the New York State and City Retirement Systems. However, the move has faced resistance from a coalition of asset owners managing £5.5 trillion, who signed a public letter in July reaffirming their commitment to collective stewardship.
In response to Nuveen’s departure, CalPERS, whose Chief Operating Investment Officer Michael Cohen chairs the Climate Action 100+ steering committee, reaffirmed its commitment to the platform.
A spokesperson for Climate Action 100+ confirmed that Nuveen and Goldman Sachs Asset Management had left the stewardship coalition but said that the ongoing politicisation of the initiative was “regrettable.”
“Climate Action 100+ will continue to support investors globally as they act on climate-related financial risks and opportunities. We welcome Goldman Sachs’ continuing commitment to maintain its sustainable investing work through its global capabilities and look forward to seeing the ongoing impact of this,” the spokesperson said.