Goldman Sachs’ fund unit is set to withdraw from investor engagement group Climate Action 100+, joining other financial services firms that have quit following a political backlash in the United States.
U.S. members of a global coalition focused on climate change have come under pressure and criticism from Republican lawmakers who say they could be violating antitrust laws by forcing companies to cut climate-damaging emissions.
In late July, Republican leaders of congressional committees sent letters to more than 130 investors asking them to explain their environmental, social and governance (ESG) goals.
A Goldman Sachs spokesman said the funds unit was leaving the group and stressed the firm’s ability to negotiate with companies on its own.
“We are investing in capabilities to meet our clients’ sustainable investment needs and remain committed to leveraging our global capabilities,” the spokesman said.
Other investment firms that have exited in the past few weeks include Aristotle Credit and Aristotle Pacific Capital on July 31, TCW Group on August 1, and Burt Asset Management, Mellon Investment Corporation and Water Asset Management on August 2.
Other big names including Invesco, JPMorgan’s fund unit and State Street Global Advisors have also exited this year.
CA100+ did not immediately comment on Goldman’s decision.
In a statement earlier this week, a CA100+ spokesperson said the way CA100+ operates is “fully explained” on the group’s website and in documents prepared for the House Judiciary Committee.
“The recent letter sent to Climate Action 100+ investors is another attempt to stop investors from considering and acting on climate risks and opportunities. Investors are independent fiduciaries and are responsible for their investment and voting decisions,” he said.
