Goldman Sachs Asset Management has ended its participation in Climate Action 100+, a climate-focused investor network focused on engaging with companies to reduce their greenhouse gas emissions and implement climate transition plans, joining several other investment manager departures as political pressure on group participants builds in the U.S.

In a statement provided to ESG Today, a Goldman Sachs spokesperson said:

“We’ve made investments in our ability to meet the sustainable investing needs of our clients and remain committed to leveraging our global capabilities.”

Launched in 2017, Climate Action 100+ (CA100+) is an investor initiative that has targeted the world’s largest corporate greenhouse gas (GHG) emitters through engagement to reduce emissions, improve governance and strengthen climate-related financial disclosures. The network has grown to include more than 700 investors across 33 markets, according to the CA100+ website.

The group, however, has also become a key target for anti-ESG politicians, and fueling claims that its members are “boycotting” energy companies. Last year, a group of U.S. Republican state attorneys general sent a letter to large asset managers warning that participation in groups such as CA100+ raised concerns about the investors’ adherence to fiduciary duties and compliance with anti-trust rules.

More recently, Republican leaders on the House Judiciary Committee sent letters in July to 130 CA100+ participants, including Goldman Sachs Asset Management, accusing them of “colluding with climate activists through initiatives like Climate Action 100+ to adopt left-wing environmental, social, and governance (ESG)-related goals,” and warning that they were “potentially in violation of U.S. antitrust law.”

In a statement accompanying the letters, the House Judiciary Committee said:

“The Committee continues to examine whether existing civil and criminal penalties and current antitrust law enforcement efforts are sufficient to deter anticompetitive collusion to promote ESG-related goals in the investment industry. The over 130 companies, retirement systems, and government pension programs with membership in Climate Action 100+ must answer for their involvement in prioritizing woke investments over their own fiduciary duties.”

In addition to Goldman Sachs, media reports have indicated that several other asset managers, including TCW and Mellon Investments, who were also sent the Committee letters last month, have also left CA100+.

The departures follow announced exits from the group earlier this year by investors including Invesco, JPMorgan Asset Management (JPMAM), State Street Global Advisors (SSGA), and PIMCO, and BlackRock’s transfer of its participation in the initiative to BlackRock International.

In a statement provided to ESG Today, a Climate Action 100+ spokesperson said:

“Since its launch in 2017, Climate Action 100+ has had a transformative impact in mainstreaming the practice of climate stewardship, as part of a prudent risk management approach undertaken in keeping with investors’ fiduciary duties. The bottom line is that climate risk is a financial risk and must be factored into investment decisions. The ongoing politicization of the initiative is regrettable. Climate Action 100+ will continue to support investors globally as they act on climate-related financial risks and opportunities. We welcome Goldman Sachs’ continuing commitment to maintain its sustainable investing work through its global capabilities and look forward to seeing the ongoing impact of this.”

The spokesperson added that “despite the unduly politicization of the initiative, Climate Action 100+ remains the largest investor engagement initiative on climate change with hundreds of investors committed to managing climate-related financial risks and ensuring long-term value for their beneficiaries and clients.”