Goldman Sachs’ fund division is withdrawing from the investor engagement group Climate Action 100+, following a trend of financial services companies retreating amid political backlash in the United States. U.S. members of global climate-focused coalitions have faced criticism from some Republican lawmakers, who argue that their efforts to push companies to reduce climate-damaging emissions may violate antitrust laws.
In late July, the Republican chair of a US congressional committee demanded that over 130 investors clarify their environmental, social, and governance (ESG) objectives. A Goldman Sachs spokesperson confirmed the division’s departure, emphasising their ability to independently engage with companies. “We’ve made investments in our ability to meet the sustainable investing needs of our clients and remain committed to leveraging our global capabilities,” the spokesperson said.
Recent exits from the coalition also include Aristotle Credit and Aristotle Pacific Capital on July 31, TCW Group on August 1, and Vert Asset Management, Mellon Investment Corp, and Water Asset Management on August 2. Notable departures earlier this year included Invesco, JPMorgan’s fund division, and State Street Global Advisors.
Climate Action 100+ has not yet commented on Goldman Sachs’ decision. Earlier this week, a CA100+ spokesperson defended the group’s operations, stating that their methods are well-documented on their website and in documents provided to the US House Judiciary Committee. “These recent letters to Climate Action 100+ investors are another attempt to deter investors from considering and acting on climate risks and opportunities. Investors are independent fiduciaries, responsible for their investment and voting decisions,” he said.