Goldman Sachs Withdraws from Climate Group

Goldman Sachs’ fund division has announced its departure from the investor engagement group Climate Action 100+, joining a growing list of financial firms that have withdrawn amid increasing political scrutiny in the United States. This trend follows criticism from Republican lawmakers who argue that such coalitions may violate antitrust laws by pressuring companies to reduce emissions linked to climate change. The political climate has intensified, with over 130 investors recently asked to clarify their environmental, social, and governance (ESG) objectives. A spokesperson for Goldman Sachs emphasized the firm’s commitment to sustainable investing, stating that the fund division is capable of engaging with companies independently. The spokesperson noted that the firm has made significant investments to meet the sustainable needs of its clients while leveraging its global capabilities. This move reflects a broader trend, as several other investment firms, including Aristotle Credit and TCW Group, have also exited the coalition in recent weeks. Notable financial institutions such as Invesco, JPMorgan’s fund division, and State Street Global Advisors have previously left Climate Action 100+, indicating a significant shift in the landscape of climate-focused investment initiatives. The Climate Action 100+ group has yet to respond to Goldman’s decision, but a spokesman recently stated that the organization’s operations are clearly outlined in its public documents. The spokesman further remarked that the recent inquiries directed at Climate Action 100+ investors represent an effort to dissuade them from addressing climate-related risks and opportunities, asserting that investors are independent fiduciaries responsible for their own investment decisions.