JP Morgan Asset Management’s decision to leave an investor coalition on climate action reflects a broader trend where large asset managers are creating their own approaches to sustainability, according to a tech entrepreneur.
In statements this week the asset management firm said it would not renew membership of Climate Action 100+, implying its own engagement initiatives and wider investments – including the building of a 40-strong analyst team – were sufficient.
“JP Morgan Asset Management is not renewing its membership in Climate Action 100+in recognition of the significant investment it has made in its investment stewardship team and engagement capabilities, as well as the development of its own climate risk engagement framework over the past couple of years,” a widely reported official statement said.
Climate Action 100+ is an activist group that challenges global companies to reduce their overall carbon footprint.
An entrepreneur in the tech space said the firm’s exit from the group was a “reminder of the importance of reassessing the dynamics of collaboration and innovation within the asset management industry when it comes to pursuing meaningful climate action”.
Per-Otto Wold, CEO of Zerolytics, said: “While JPMorgan’s initiative to develop its own climate risk engagement framework is commendable, it also reflects a broader trend where large asset managers are seeking to individualise their approach to sustainability, which ultimately risks fragmenting efforts and diluting the collective impact needed for meaningful environmental change.”
He said the departure of firms like JPMorgan from coalitions such as Climate Action 100+ should not be viewed solely as a setback; rather, it presents an opportunity to “contemplate how these alliances can evolve to accommodate and leverage the unique strengths of their members”.
