Top investors, including Vanguard, face pressure from US Republican politicians to use ESG factors in their investments.
Vanguard Group Inc, the world’s largest mutual fund, said his manager wants to show independence and make its views clear to investors as it withdraws from a major investment industry initiative to fight climate change. rice field.
Top investors, including Pennsylvania-based Vanguard, are facing increasing pressure from U.S. Republican politicians to use environmental, social and governance (ESG) factors in choosing and managing securities. I’m here.
has come under fire for an initiative known as the Net Zero Asset Manager (NZAM), launched in late 2020, to see the fund manager meet his net zero emissions target by 2050 and contribute to the planet. We encourage you to limit global warming.
As of Nov. 9, NZAM counted his 291 signatories, worth about $66 trillion in assets under management.
Vanguard’s withdrawal from the initiative, which has nearly $7 trillion in assets under management, is a setback in efforts to organize the industry to move away from fossil fuels, but Vanguard argued that: The risks that climate change may pose to their long-term bottom line.
By May, Vanguard was still pushing forward with his NZAM objectives. On Wednesday, Vanguard issued a statement on its website saying industry initiatives like NZAM could cause disruption.
“To help provide investors with the clarity they want about the role of index funds and how they view material risks, including climate-related risks, Vanguard will independently discuss any issues of concern to investors,” Vanguard said in a statement.
A privately held Vanguard did not reach out to executives for comment. But his statement addresses criticism from some investors and Republican US officials that efforts like NZAM violate antitrust laws. The UN-affiliated parent company had already been urged to tone down its financing policies for fossil fuels.
Vanguard’s rivals, including BlackRock Inc., take the opposite view, saying joining NZAM is not inconsistent with their independence. A BlackRock spokesperson said Wednesday that the company will remain part of NZAM.
Daniel Wiener, chairman of Adviser Investments in Newton, Massachusetts, and a longtime Vanguard observer, said the company’s exit was a result of BlackRock’s decision to take over his ESG issues, which he has with Laurence Fink. He said it showed a lack of strong leadership.
Originally published at https://businessdor.com on January 27, 2023.
No comments:
Post a Comment