Climate Action 100+ has confirmed that JP Morgan Asset Management, State Street Global Advisors, and PIMCO have decided to withdraw from the initiative. BlackRock (“BlackRock, Inc.”) has also transferred its participation in Climate Action 100+ to BlackRock International. Despite the disappointment at their departure, hundreds of investor signatories remain committed to ensuring 170 of the largest greenhouse gas emitters reduce emissions, improve governance, and strengthen climate-related financial disclosures.

In terms of progress to date, the initiative, recognized as the world’s largest voluntary investor engagement initiative on climate change, has seen remarkable achievements by its signatories. They have played a pivotal role in driving the business transition to a net-zero emissions economy, setting industry standards for corporate climate ambition and action.

The Net Zero Company Benchmark, a first-of-its-kind initiative, reveals that 77% of focus companies have pledged to achieve net-zero emissions by 2050 or earlier, covering at least Scope 1 and 2 emissions. Additionally, 93% of focus companies have implemented board committee oversight of climate change risks and opportunities, while 90% have explicitly committed to aligning their disclosures with the TCFD recommendations.

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However, Climate Action 100+ acknowledges the ongoing financial risk posed by the climate crisis to long-term shareholder value and the broader economy. Given the increasing frequency and intensity of catastrophic weather events, urgent and ambitious action is more crucial than ever to halve emissions in this decade and create long-term shareholder value.

At the core of Climate Action 100+ is the fundamental principle that climate risk is financial risk. Investors participating in the initiative engage with companies to actively manage climate-related risks and opportunities, aligning with their fiduciary duties to preserve long-term shareholder value for their clients and beneficiaries.

In June 2023, Climate Action 100+ launched its phase two strategy, maintaining its consistent purpose of ensuring the world’s largest corporate greenhouse gas emitters take necessary action on climate change. The initiative goes beyond mere disclosure, with the second core ask focusing on companies taking action to reduce greenhouse gas emissions across the value chain.

The updated ask in phase two for companies to implement transition plans logically builds on the enhanced disclosures requested in phase one. Despite setbacks, the initiative continues to receive backing and support from hundreds of investors globally, including asset owners, with 60 new signatories joining since the launch of phase two alone.