JPMorgan Chase & Co has announced that its asset management unit has withdrawn from a major industry climate initiative, marking a setback for the group that had sought to prevent such departures amid political pressure from U.S. Republicans earlier this year.
A representative from JPMorgan Asset Management (JPMAM) indicated that the decision was influenced by the Net Zero Asset Managers initiative's pause in January, which occurred "in the midst of developments in the regulatory environment and client expectations." Consequently, JPMAM decided to exit the initiative.
The company has not provided additional comments, nor have the organizers of the initiative, who have faced pressure from Republicans, particularly those from energy-producing states, accusing fund firms of collusion.
Established in December 2020, the Net Zero Asset Managers initiative aimed to align the global fund management industry with climate goals. At the beginning of the year, it boasted over 325 signatories managing more than $57.5 trillion in assets.
However, with the departure of BlackRock, the world’s largest asset manager, efforts were suspended. JPMorgan also exited the Net Zero Banking Alliance within the same time frame.