BlackRock, State Street Global Advisors back out of climate transition group

“By caving into the demands of right-wing politicians funded by the fossil fuel industry and backing out of their commitment to Climate Action 100+, these enormous financial institutions are failing in their fiduciary duty and putting trillions of dollars of their clients’ assets at risk,” said New York City Comptroller Brad Lander in a statement. “Climate risk is financial risk. Today BlackRock, JPMorgan, and State Street are choosing to ignore both.”

J.P. Morgan Asset Management and State Street Global Advisors pulled out of the Climate Action 100+, a spokesperson for the group confirmed to Fortune. Climate Action is a global initiative of 700 investors with more than $60 trillion in assets that engages with public companies on net-zero strategies and timelines. BlackRock withdrew as a corporate member and shifted its participation to BlackRock International a few weeks ago, the asset management firm said in a note. 

Climate Action was founded in 2017 and focuses on 170 companies that are among the heaviest emitters of greenhouse gasses. The coalition, announcing the second phase of its strategy in June 2023, said it intended to see more targeted actions from companies on reducing their GHG emissions and wanted members to support the efforts. Phase 2 takes effect this June. 

According to a note from BlackRock, this new phase was part of the decision to alter its participation. When the asset management firm became a signatory in 2020, the group was focused on corporate disclosures. 

“This new strategy will require signatories to make an overarching commitment to use client assets to pursue emissions reductions in investee companies through stewardship engagement,” the…