Baillie Gifford quits two green investor groups

Baillie Gifford has left two major green investing bodies, becoming the latest asset manager to do so.
The Edinburgh-based asset manager, which is home to popular funds such as the Scottish Mortgage Investment Trust, said that its membership of Climate Action 100+ and the Net Zero Asset Managers Initiative had “become contested” and risked “distracting from our core responsibilities”.
Climate Action 100+ and Net Zero Asset Managers Initiative were set up in 2017 and 2020 respectively to help big investors engage with companies on climate change issues.
This year some of the most influential investors in the world have quit the groups, including JPMorgan Asset Management, State Street Global Advisors and Invesco.
The withdrawal of some of the biggest asset managers came after Climate Action shifted its targets last year for companies to adopt climate transition plans, rather than just disclosing risks.
In the United States there has also been a political backlash against sustainable investing. Earlier this year financial businesses faced pressure from Republican politicians over membership of green investing groups, arguing that committing to shared action could be a breach of antitrust law.
Baillie Gifford’s decision to withdraw from the groups comes months after the asset manager pulled its sponsorship from the Edinburgh International Book Festival after protests over its alleged links to fossil fuels.
A spokesman for Baillie Gifford said: “After careful consideration, we have decided to withdraw from Climate Action 100+ and the Net Zero Asset Managers Initiative. Our membership has become contested and this risks distracting from our core responsibilities.
“This change in membership status will not affect our commitment to always act in accordance with the mandates given to us by our global client base. This includes appropriate analysis of climate-related risks and opportunities where relevant to any investment case.”
The asset manager has a £144 million fund, the Keystone Positive Change Investment Trust, which is dedicated to investing in companies whose products or services make a positive social or environmental impact.
A spokesman for Climate Action 100+ said that it was “disappointed” by any withdrawals, but respected each investor’s independent decision-making.
A spokesman for the Net Zero Asset Managers Initiative said that its signatory base had grown in the past 12 months. “In the past month alone, we welcomed three new asset managers, highlighting the initiative’s ongoing momentum and growing position as a platform for ambition.
“NZAM’s mission remains unchanged: to support asset managers as they commit to and achieve net-zero emission goals, mitigating climate-related financial risk in their portfolios and maximising the long-term value of their assets.”