By Ian Withers and Simon Jessop
LONDON (Reuters) – Goldman Sachs Fund Management is to withdraw from investor outreach group Climate Action 100+, joining other financial services firms that have pulled out amid a political backlash in the United States.
Members of global climate-focused coalitions in the United States have come under pressure after some Republican lawmakers criticized them for potentially violating antitrust rules by pressuring companies to cut climate-damaging emissions.
In late July, the Republican leader of a US congressional committee wrote to more than 130 investors asking them to explain their environmental, social and governance (ESG) goals.
A Goldman Sachs spokesman said the funds division would leave the group, highlighting its ability to handle companies on its own account.
“We have made investments in our ability to meet the sustainable investment needs of our clients and remain committed to enhancing our global capabilities,” the company spokesperson said.
Other investment firms that have exited in the past two weeks include Aristotle Credit and Aristotle Pacific Capital on July 31, TCW Group on August 1, and Vert Asset Management, Mellon Investments and Water Asset Management on August 2.
Some big players have also left this year, including Invesco, the funds division of JPMorgan. State Street (NYSE:) Global Advisors.
CA100+ had no immediate comment on Goldman’s decision.
In a statement earlier this week, a CA100+ spokesperson said the way CA100+ operates is “well described” on its website and in documents submitted to the U.S. House Judiciary Committee.
“These latest letters to investors from over 100 climate action organizations are yet another attempt to deter investors from considering and acting on climate risks and opportunities. Investors are independent trustees, responsible for their investment and voting decisions,” he said.