Major Asset Managers Exit Climate Action 100+ Over Exxon Dispute
A wave of exits from the Climate Action 100+ network has raised concerns about the commitment of major asset managers to sustainability goals. The departures of State Street, JP Morgan, BlackRock, and other large index fund providers have left the alliance without its three biggest players.
The exodus began after Exxon Mobil, also known as XOM, announced it would take two of its shareholders to court over climate resolutions. This move was seen by many as a test of asset owners' influence over climate transition planning at oil and gas firms. The absence of any activist resolution at Exxon's AGM this year has further fueled these concerns.
Gustave Loriot-Boserup, founder of Compass Insights, described the exits as 'not surprising' given the historical voting patterns of these asset managers against CA100+ proposals. Cynthia Hanawalt, director at the Sabin Center for Climate Change Law, warns that Exxon's lawsuit against its shareholders poses a threat to shareholder rights.
While the departure of these large asset managers has removed over $14trn of assets from the network, Sam Mahtani, founder of Alpha ESG Consulting, argues that the impact should not be overstated. He points out that CA100+ still has a substantial signatory base. Keith Guthrie, head of Sustainability at Cardano and Now: Pensions, emphasizes the importance of alignment on values when selecting a manager for stewardship.
The exits of major asset managers from Climate Action 100+ have raised questions about their commitment to sustainability. While the impact on the network's overall influence is debated, the moves come at a critical time for climate transition planning in the oil and gas sector.
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