Dive Brief:
- Subsidiaries of asset manager Franklin Templeton and insurance services company Sun Life Financial became the latest to exit the Climate Action 100+ coalition last week.
- The recently departed firms include ClearBridge Investments — a Franklin Templeton company overseeing $184.9 billion in assets — and Sun Life Financial subsidiaries SLC Fixed Income and Crescent Capital — which manage $51 billion and over $40 billion in assets, respectively. A spokesperson from CA100+ confirmed the exits to ESG Dive over email.
- All three financial firms withdrew from the climate action investor group on Aug 13, according to the coalition’s spokesperson, a few days after Goldman Sachs’ asset management arm announced it was leaving the group.
Dive Insight:
The outflows come after several high-profile financial services institutions left the climate coalition earlier this year amid heightened scrutiny surrounding ESG and climate initiatives.
In February, JPMorgan Asset Management and State Street Global Advisors announced they were departing CA100+, while BlackRock downgraded its membership to a smaller international arm. This exodus also spurred exits from other high-profile financial institutions in the following months, including the Pacific Investment Management Company and Invesco.
Last month, the House Judiciary Committee sent letters to over 130 U.S.-based companies, retirement systems and government pension funds that are members of CA100+, inquiring about their involvement in the group. Those letters also questioned how the members would incorporate CA100+’s “Phase Two” requirements.
“After thoughtful consideration of our business objectives, we have decided not to proceed with our membership in Climate Action 100+ effective immediately,” Sun Life said in an emailed statement to ESG Dive regarding SLC Fixed Income’s departure from CA100+.
Crescent Capital and Franklin Templeton did not respond to a request for comment as of press time.
All three financial institutions are no longer listed as participating members on the coalition’s website.
CA100+ focuses on engaging companies to improve their climate change governance, slash emissions and strengthen climate-related financial disclosures to “create long-term shareholder value,” according to its website. The group, which now comprises over 700 investors, initially launched as a five-year initiative in 2017 but announced plans to extend its remit to 2030 last year.
CA100+ previously told ESG Dive that the ongoing politicization of its initiative, and climate stewardship in general, was “regrettable.”
