Quote:Two of the world’s biggest asset managers are quitting a United Nations climate alliance group as BlackRock scales back.

JPMorgan Asset Management and State Street Global Advisors announced on Thursday that they would be leaving the group called ‘Climate Action 100+.’

The move comes after BlackRock, which is the world’s largest money manager, pulled out as a corporate member and transferred its participation to its smaller international arm, limiting its involvement.

The latest decisions weaken the climate change group’s plans because now none of the world’s five largest asset managers are supporting the climate alliance group.

This comes after Republicans have been at odds with the largest U.S.-based asset managers, over their push for climate issues. However, European firms and smaller competitors have stood by the climate groups.

BlackRock said in a note that it would be dropping its corporate membership because of the groups belief in their phase 2 strategy that takes effect in June. The phase 2 strategy conflicts with U.S. laws requiring money managers to act only in clients’ long-term economic interest.

JPMorgan commented on the move saying they will not renew its membership of Climate Action 100+.

“Given these strengths and the evolution of its own stewardship capabilities, JPMAM has determined that it will no longer participate in Climate Action 100+ engagements.”

Additionally, JPMorgan’s engagement report states that it “does not work in concert with other investors on investment matters and makes its own independent decisions concerning investee companies.”

Meanwhile, BlackRock said it’s no longer a member of the CA100+ but changed its membership in CA100+ to BlackRock International.

“As BlackRock made clear when signing up as a member of CA100+ in 2020, at all times the firm maintains independence acting on behalf of clients, including in choosing which issuers to engage with, and how to vote proxies,” the company said in a press release.

Close to 40% of BlackRock’s $10 trillion in assets under management are outside the United States.