Invesco, a global investment management company with $1.59 trillion under management, has announced its departure from the Climate Action 100+ (CA100+) investor coalition, effective immediately. This decision follows similar moves by other major US asset managers, raising questions about the future of the world’s largest investor-led engagement initiative on climate change.

A Growing List of Departures:

Invesco joins J.P. Morgan Asset Management, State Street Global Advisors, and Pacific Investment Management Co. (Pimco) in leaving CA100+ entirely. Additionally, BlackRock, the world’s largest asset manager, has scaled back its involvement by transferring its participation to BlackRock International.

Reasoning Behind the Exits:

Invesco, like the other departing members, cited a preference for their “existing investor-led and client-centric issuer engagement approach” in serving their clients’ interests related to climate change. However, the specific details of these alternative approaches remain unclear.

CA100+ Responds:

While acknowledging the “disappointing” decision, a spokesperson for CA100+ emphasized the organization’s continued strength: “The organization continues to have strong participation from 700 hundred investors globally, including asset owners and managers. Over 60 new investors have joined the initiative since June 2023 underscoring the strong interest and ongoing demand for investor-led climate action.“

Shifting Focus and Potential Challenges:

This news comes as CA100+ transitions into Phase 2 of its engagement plan, aiming to increase pressure on companies to reduce emissions beyond just disclosing climate risks. This shift in focus, alongside the recent departures, raises questions about the organization’s future effectiveness and potential for further member exits.

Related Article: Climate Action 100+ Reaction to JP Morgan & State Street Departure

Criticisms and Ongoing Support:

CA100+ has faced criticism from some US Republican politicians regarding potential breaches of antitrust laws. However, the organization maintains confidence in its legal compliance. Despite the recent departures, CA100+ highlights the addition of 60 new signatories since launching Phase 2, demonstrating continued support for investor-led climate action from other parts of the investment community.

The evolving landscape of CA100+ membership underscores the complex dynamics at play in the fight against climate change. While some major investors are choosing alternative approaches, CA100+ maintains its commitment to its mission with a focus on attracting new members and increasing pressure on companies to transition towards a sustainable future.