Major Firms Withdraw from Controversial Climate Coalition

On Thursday, two of the world’s largest investment firms withdrew from a far-left climate coalition of businesses which ostensibly aims to reduce so-called “global warming” through private sector actions.

As reported by Just The News, JPMorgan Chase and State Street Global Advisors both announced their withdrawal from Climate Action 100+, in addition to Blackrock announcing that it would be reducing its overall participation in the movement. The three firms together manage a total of $15 trillion in assets, with JPMorgan managing $2.5 trillion, State Street managing $3.5 trillion, and Blackrock managing a staggering $9 trillion.

The climate coalition has been seen as one of the largest and most prominent examples of environmental, social, and governance (ESG) practices in the private sector, where corporations impose stricter standards on themselves related to diversity in hiring as well as a commitment to green energy policies. It has become a top target for critics of ESG, and the announcements on Thursday were met with celebration from opponents of the movement.

Climate Action 100+ is a coalition of private businesses that mandates its members to reduce carbon emissions in an attempt to reduce the global temperature by approximately 2.7 degrees Fahrenheit, which the Paris Climate Accord set as a target in 2015, claiming it would be roughly on par with the global temperature prior to the Industrial Revolution.

There are still approximately 700 different companies that have joined the agreement, including asset managers and engagement service providers, for a combined asset total of $68 trillion.

Some critics maintained a note of caution in their response to the news.

“JP Morgan and State Street’s departure is a necessary step in the right direction, but consumers should wait to trust these companies again,” said Will Hild, executive director of Consumers Research. “By leaving the Climate Action 100+ climate cartel, they are signaling that the actions of millions of consumers and dozens of elected officials are having an effect.”

Despite leaving the Climate Action coalition, Blackrock remains one of the largest proponents of ESG policies on the planet, frequently using its size and massive resources to intimidate smaller companies into adopting far-left practices.