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Goldman Sachs' fund division to leave climate investor group

Published 08/09/2024, 10:30 AM
Updated 08/09/2024, 11:56 AM
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By Iain Withers and Simon Jessop

LONDON (Reuters) -Goldman Sachs' fund division is to leave investor engagement group Climate Action 100+, joining other financial services companies which have pulled out amid a political backlash in the United States.

U.S. members of global climate-focused coalitions have come under pressure as some Republican lawmakers have criticised them for potentially breaching antitrust rules by pushing companies to cut climate-damaging emissions.

At the end of July, the Republican leader of a U.S. congressional committee wrote to demand more than 130 investors explain their environmental, social and governance (ESG) goals.

A Goldman Sachs spokesperson said the fund division would leave the group and highlighted its ability to engage with companies on its own account.

"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.

Others investment companies to leave in the past couple of weeks include Aristotle Credit and Aristotle Pacific Capital on July 31, TCW Group on Aug. 1, Vert Asset Management, Mellon Investment Corp and Water Asset Management on Aug. 2.

Some big players have also left this year, including Invesco, JPMorgan's fund division and State Street (NYSE:STT) Global Advisors.

CA100+ had no immediate comment on Goldman's decision.

© Reuters. FILE PHOTO: A screen displays the trading information for Goldman Sachs on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 17, 2022. REUTERS/Brendan McDermid/File Photo

In a statement earlier this week, a CA100+ spokesman said the way CA100+ operates was "well described" on its website and in documents produced for the U.S. 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.

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