It hasn’t been an easy year for Climate Action 100+ (CA 100+). The group was originally formed to bring investors and financial institutions together to tackle the climate crisis through asset management. However, in recent years the organization has found itself at the center of a political battle as it and its membership have been repeatedly targeted by the Anti-ESG movement. This has led to a series of high-profile exits from the group including Goldman Sachs, Vanguard, and State Street. Most recently Nuveen, a $1.1 trillion manager has opted to leave CA 100+. Net Zero Investor writes of the departure stating:
“A spokesperson for the manager confirmed to Net Zero Investor 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.’ The manager did not clarify why it has left the stewardship coalition.”
This is par for the course as exiting institutions often fail to specify a reason for their departure and reaffirm their commitment to climate-related issues despite leaving CA 100+. Though Nuveen failed to explain their rational, it’s not hard to see that political pressure has been building. Nuveen recently received a letter requesting information about its participation in CA 100+ from the House Judiciary Committee – which spearheads Anti-ESG efforts at the national level. What’s interesting about the exodus is that no litigation has been formally brought during the process. The Anti-ESG argument that climate organizations are colluding and participating in anti-competitive practices has been largely debunked by legal scholars. However, it appears my sentiments from last year are being proven correct and that the optics and the risk of litigation are enough for Anti-ESG to win on this front.
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