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8 Wall Street Firms Snub Alliance to Fight Climate Change: Report

The Glasgow Financial Alliance for Net Zero is reportedly struggling to get funds from a string of top notch asset managers and investment bankers in the U.S.

A new financial alliance aimed at curbing climate change is reportedly struggling to get funds from a string of top notch asset managers and investment bankers in the U.S., Bloomberg reports.

T. Rowe Price Group, Pimco [Pacific Investment Management], Fidelity Investments, Capital Group, PGIM and Northern Trust Asset Management, and the money management units of Morgan Stanley and Goldman Sachs are all reportedly on that list.

All eight have decided to exclude themselves from one of the industry’s biggest coalitions to fight climate change, the Glasgow Financial Alliance for Net Zero, Bloomberg first reported.

GFANZ is led by former Bank of England Governor Mark Carney and has been trying to drum up financial support towards climate neutrality throughout 2021.

Last month GFANZ announced $130 trillion of private capital directed to meaningful decarbonisation at COP26. 

The alliance has managed to sign up other top banking giants including JPMorgan, BlackRock, Citigroup and Vanguard.

Thus far, while the banking arms of Goldman Sachs and Morgan Stanley have both joined the GFANZ unit for banks, the asset management divisions have stayed away from signing up, the reports says.

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Goldman Sachs told Bloomberg the unit is now "actively evaluating signing up for the sub-alliance for asset managers, and is supportive of its goals." 

Morgan Stanley declined to comment on the Bloomberg report.

The other firms that have chosen to not support GFANZ so far have mostly listed "fiduciary" responsibilities to clients as the main reason. Some firms said they have made "independent commitments"  towards these issues and maintained that they support climate sustainability causes, the report says.

Ryan Korinke, managing director and global head of sustainability at Pimco, told Bloomberg that the firm “strongly supports climate and sustainability-related initiatives.” 

Pimco also offers a “full range of strategies and products” that allow it to manage client money in a manner that’s consistent with net-zero goals, Bloomberg reported.

“However, as a fiduciary, we don’t believe it’s appropriate to make specific commitments on our clients’ behalf, especially given the complexity of the long-term challenges ahead,” Korinke told Bloomberg.

Fidelity Investments told Bloomberg that they agree in principle with zero emission pledges made by GFANZ.  

"Fidelity has approached these issues with a thoughtful and strategic investor mindset, and after careful consideration, the company has opted to make independent commitments rather than sign on to shared pledges,” a Fidelity Spokesperson told Bloomberg.