The Republican-led House Judiciary Committee has targeted a group of US asset managers over their involvement in an “ESG monopoly” – increasing pressure against the environmental efforts of major investors.
The committee, chaired by Ohio Rep. Jim Jordan, sent letters to 60 firms — including BlackRock, State Street and JPMorgan Asset Management — that are members of the Net Zero Asset Managers initiative, or NZAM, an international group of investors who have signed a pledge to achieve… Net zero emissions by 2050.
The letters, sent Friday, made claims consistent with the committee's Dec. 13 report that Republicans say showed finance companies colluded to cut emissions.
This report found that senior US asset managers were concerned that signing up to the Industry Climate Initiative would make them appear to be working too closely together and attract regulatory scrutiny.
Democrats on the committee have rejected such allegations, and major fund companies have denied similar accusations.
Jordan alleges in the letter that the companies' efforts with NZAM and Net Zero's Glasgow Financial Alliance “may violate US antitrust law,” citing the previous report.
It asks for information such as how companies' participation in NZAM has changed their stewardship strategies.
GOP Judiciary Committee members claim that investors' preoccupation with environmental, social and governance (ESG) strategies takes the focus away from generating profits for shareholders and imposes unnecessary restrictions on businesses.
Republicans had previously taken credit for urging three fund managers — BlackRock, State Street and JPMorgan Asset Management — to back away from another investor group, the Climate Action Group 100+.
Mindy Loper, CEO of Boston-based environmental advocacy group Ceres, an organizing partner for NZAM, said in an interview that the messaging was “consistent with other efforts to suggest that investors should not consider climate risks, when of course they should.” “Be aware.” of climate risks as part of their fiduciary duty.
NZAM says its initiative has attracted about 325 sites managing $57.5 trillion globally, according to its website.
With mail wires
