Climate Action 100+ suffered another blow recently when Swiss Re announced its exit from the climate pact. The financial institution was previously a supporter of the organization rather than a direct participant, but their exit marks another loss in a long line of departures. Responsible Investor reports on Swiss Re’s decision stating:
“Prior to its departure, Swiss Re was listed on CA100+’s investor signatories page as a ‘supporter’, which meant it publicly supported the initiative’s goals but did not participate directly in engagements with focus companies. A Swiss Re spokesperson told RI that the insurance giant was streamlining the number of its ‘sustainability agreements’ in order ‘to focus our resources and advance our group-wide sustainability strategy more effectively.’”
Climate Action 100+’s woes began with pressure from the anti-ESG movement when politicians threatened member companies with investigations and anti-trust enforcement actions. However, the anti-ESG argument was considered weak and while it may have driven some of the departures, Climate Action 100+’s phase two is also a driving factor. Phase one of Climate Action 100+ was built around setting targets and disclosing GHG emissions, whereas phase 2 will delve into active emissions reductions across portfolio companies. This ratcheting up of requirements has some financial institutions reassessing their position and membership. As we’ve discussed recently, banks have come under fire for failing to move the needle on climate change, despite being members of climate pacts and having transition plans. The reluctance of financial institutions to take the next step and begin reducing emissions may be part of the reason for the climate pact exodus.
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