JPMorgan Asset Management Exits Climate Action 100+ Group Amid Strategy Shift
LONDON – In a significant move, JPMorgan Asset Management (JPMAM), the investment arm of the leading U.S. banking giant JPMorgan Chase & Co, announced its departure from Climate Action 100+, an influential investor coalition dedicated to pressing major companies on climate change initiatives. This decision comes after a period of "significant investment" in JPMAM's investment stewardship capabilities and the development of its sustainable investing team.
Over recent years, JPMAM has significantly expanded its focus on sustainable investing, establishing a team of 40 dedicated professionals that include investment stewardship specialists and leverage one of the most comprehensive buy-side research teams in the financial industry. This strategic enhancement of in-house capabilities has led JPMAM to reassess its external affiliations, culminating in the decision to step away from Climate Action 100+.
"The firm has built a team of 40 dedicated sustainable investing professionals, including investment stewardship specialists who also leverage one of the largest buy-side research teams in the industry," stated JPMorgan Asset Management. This enhancement of internal structures and expertise underscores JPMAM's commitment to integrating sustainable investing practices within its operations and investment decisions.
This move by JPMAM marks a pivot in its approach to promoting environmental sustainability and corporate governance across its investment portfolio, opting for a more insular strategy that relies on its developed resources and expertise. "Given these strengths and the evolution of its own stewardship capabilities, JPMAM has determined that it will no longer participate in Climate Action 100+ engagements," the firm added.
The departure of JPMAM from the Climate Action 100+ coalition, first reported by the Financial Times, underscores a broader trend among major investment institutions reevaluating their participation in collective climate engagements. As firms like JPMAM augment their internal capabilities, the landscape of collaborative efforts toward environmental sustainability may witness transformative shifts.
JPMAM's exit from Climate Action 100+ does not signify a retreat from sustainable investing but represents a strategic realignment of how the firm influences climate-related corporate practices. By focusing on its in-house team of sustainable investing experts, JPMorgan Asset Management aims to exert its stewardship and drive change through direct engagements with companies.
As the investment community continues to evolve in its approach to climate change and sustainable investing, the departure of significant players from collaborative groups like Climate Action 100+ may herald a new era of individualized strategies underpinned by enhanced internal capabilities and specialized expertise.
Analyst comment
Neutral news: JPMorgan Asset Management’s departure from Climate Action 100+ signifies a strategic shift towards a more insular approach to promoting environmental sustainability and corporate governance. They will focus on leveraging their internal resources and expertise to drive change through direct engagements with companies. This trend of major institutions reassessing their participation in collective climate engagements may lead to transformative shifts in collaborative efforts for environmental sustainability.
