• Goldman Sachs’ fund division exits Climate Action 100+, joining a trend of U.S. firms withdrawing amid political backlash.
• Republican lawmakers raise concerns about potential antitrust violations related to climate-focused coalitions.
• Climate Action 100+ emphasizes that its members operate independently in investment and voting decisions.

Goldman Sachs’ fund division has announced its exit from the investor engagement group Climate Action 100+, following a series of withdrawals by U.S. financial services companies facing political pressure. The move aligns with recent actions by other firms amid growing scrutiny from Republican lawmakers.

U.S. members of global climate-focused coalitions have come under fire as some Republican lawmakers argue these groups might violate antitrust rules by encouraging companies to reduce climate-damaging emissions. This political tension was highlighted when a Republican congressional leader recently demanded over 130 investors to clarify their ESG goals.

A spokesperson for Goldman Sachs confirmed the exit, stating, “We’ve made investments in our ability to meet the sustainable investing needs of our clients and remain committed to leveraging our global capabilities.” This reflects the firm’s strategy to engage with companies independently, without the association with Climate Action 100+.

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Goldman Sachs is not alone in this move. In the past few weeks, Aristotle Credit, Aristotle Pacific Capital, TCW Group, Vert Asset Management, Mellon Investment Corp, and Water Asset Management have also exited the group. Earlier this year, major players like Invesco, JPMorgan’s fund division, and State Street Global Advisors similarly withdrew.

While Climate Action 100+ has yet to comment on Goldman’s decision specifically, a spokesperson for the group addressed the broader issue earlier this week. “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,” the spokesperson emphasized, reinforcing the autonomy of its members in their climate-related actions.