Nuveen and two other US asset managers have joined the exodus from Climate Action 100+ amid a Republican probe into the initiative, Responsible Investor can reveal.
The $1.2 trillion asset manager confirmed to RI that “after careful consideration and as a result of an ongoing rigorous governance review process”, it has ended its membership of the collaborative engagement network.
“We are fully committed to responsible stewardship, engagement on climate-related issues with investee companies, mitigating risk across asset classes and helping our clients meet their climate-related investment goals,” said a spokesperson.
Nuveen’s exit has been accompanied by Boston-based Breckinridge Capital Advisors, which manages $49 billion, and Easterly Investment Partners, a multi-affiliate platform of boutique investment managers
Breckinridge was one of the co-lead investors for the group engaging with construction equipment manufacturer Caterpillar, while Nuveen said in its 2023 stewardship report that it was a member of the lead engagement group for four undisclosed companies.
Nuveen, a wholly owned subsidiary of TIAA, has been one of the leading proponents of responsible investing, while Breckinridge is a Massachusetts Benefit Corporation and a certified B Corp.
A spokesperson for Breckinridge confirmed the manager’s departure from CA100+ this month.
They added: “We believe climate change continues to be a material investment risk and incorporate analysis of it in our investment process. Our investment philosophy, process and robust approach to ESG integration and independent engagement with debt issuers remain unchanged.”
The exits follow a letter from the Republican-led House Judiciary Committee demanding the preservation of documents relating to the collaborative engagement initiative as well as information from investors on actions they planned to take as part of CA100+.
Other exits since the letter was sent on 30 July have included Goldman Sachs Asset Management, Mellon Investments, TCW Group, Clearbridge Investments and Segal Marco Advisors.
Last week, RI reported that CA100+ was pushing back against the latest probe, claiming it is unlikely to turn up any new information beyond “the tens of thousands of documents that have already been produced for the committee”.
“These letters are another attempt to deter investors from participating in the initiative. It is regrettable that investor action is being unduly politicised in this way,” CA100+ said.
Despite a number of its largest members leaving, the initiative has pointed to the fact that 85 investors have joined since July 2023.
Easterly has been approached for comment.
