Climate Change’s New Ally: Big Finance

Madison Condon in the Boston Review:

Over the past two years a striking change has taken place in the boardrooms of greenhouse-gas producers: a growing number of large companies have announced commitments to achieve “net zero” emissions by 2050. These include the oil majors BP, Shell, and Total, the mining giant Rio Tinto, and the electricity supplier Southern Company. While such commitments are often described as “voluntary”—not mandated by government regulation—they were often adopted begrudgingly by executives and boards acquiescing to demands made by a coordinated group of their largest shareholders.

This group, Climate Action 100+, is an association of many of the world’s largest institutional investors. With over 450 members, it manages a staggering $40 trillion in assets—roughly 46 percent of global GDP. Founded in 2017, the coalition initially was made up mostly of pension funds and European asset managers, but its ranks have grown rapidly, and last winter both J.P. Morgan and BlackRock (the world’s largest asset manager) became signatories to the association’s pledge to pressure portfolio companies to reduce emissions and disclose financial risks related to climate change.

More here.