FT News Briefing Asset managers cool on climate group
Feb 16, 2024
The European Commission's push for military enhancement sparks crucial discussions about defense needs. Notably, major asset managers like JPMorgan and State Street are exiting a climate-focused investor group, raising eyebrows about corporate commitment to sustainability. Meanwhile, big food companies explore innovative farming practices that could sequester carbon but face numerous obstacles. Additionally, the cocoa market is experiencing a price surge due to supply issues, attracting hedge fund investors like never before.
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US Law vs. ESG
- US asset managers prioritize client profits over climate action.
- This is due to legal obligations, causing conflict with broader ESG goals.
Asset Managers Quit Climate Group
- Three major asset managers are pulling back from Climate Action 100+.
- This weakens the group’s power to push companies towards decarbonization.
Carbon Measurement Challenges
- Measuring carbon sequestration in soil is complex and inaccurate.
- Many factors influence it, making it hard to verify offsetting claims.