Exxon AGM Drops Climate Resolution as Asset Managers Exit CA100+
Exxon's AGM won't see a climate activist resolution this year, sparking concerns about asset owners' influence on oil and gas firms' climate transition plans. Major asset managers' departure from the Climate Action 100+ initiative has stirred debate about responsibility and integrity. State Street and JP Morgan, two of Climate Action 100+'s largest asset managers, left the network within a day, with BlackRock scaling back involvement. This followed Exxon Mobil's lawsuit against shareholders who filed a climate resolution, potentially discouraging further activism. The exits removed over $14 trillion of assets from the stewardship coalition, excluding the three largest index fund providers.
Gustave Loriot-Boserup, founder at Compass Insights, wasn't surprised by these exits due to the asset managers' historical voting patterns against CA100+ proposals. Cynthia Hanawalt, director at the Sabin Center for Climate Change Law, warns that Exxon's lawsuit threatens shareholder rights. Keith Guthrie, head of Sustainability at Cardano and Now: Pensions, emphasizes the importance of alignment on values when selecting a manager for stewardship. Despite the exits, Sam Mahtani from Alpha ESG Consulting believes CA100+ still has a substantial signatory base committed to the cause, and asset managers are unlikely to abandon engagements midway.
The exits of major asset managers from Climate Action 100+ raise questions about the initiative's future and asset owners' commitment to climate activism. While Exxon's lawsuit may have discouraged some, the initiative still has significant support. The focus now shifts to ensuring alignment of values in stewardship and maintaining momentum in climate transition planning.
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