Stockholm (NordSIP) – The recently announced second phase of Climate Action 100+ (CA100+) will be directed from the United States for the coming year. The collaborative engagement initiative announced on 16 April 2024 that Michael Cohen, the Chief Operating Investment Officer of the California Public Employees’ Retirement System (CalPERS) has been named as the new chair of the CA100+ Steering Committee.
Cohen is no stranger to the organisation, having been one of the founding members of the CA100+ steering committee. He joined CalPERS, the largest pension scheme in the US, in 2018 as Chief Financial Officer before moving on to the position of Chief Operating Investment Officer in December 2023. His responsibilities in the latter role include acting as Chief of Staff to the Chief Investment Officer. Cohen also provides expert consultation and advice to the CalPERS Board as a member of the executive leadership team. At CA100+ he takes over from François Humbert, Lead Engagement Manager for Generali Asset Management in the Steering Committee role that rotates every twelve months between different regional representatives.
With more than 700 institutional investors engaging with 170 of the world’s highest emitters of greenhouse gases (GHG), CA100+ is the world’s largest collaborative corporate engagement initiative. While it achieved greater disclosure on GHG emissions from companies and persuaded more than 75% of them to set net-zero targets during its initial phase, CA100+ has drawn criticism for inadequately articulated engagement strategies, inconsistent reporting, and a lack of information on outcomes. In June 2023 the initiative announced a more action-orientated second phase designed to address some of these perceived shortcomings, with a shift away from disclosure towards a greater emphasis on the implementation of corporate climate transition plans.
The announcement of Phase 2 of CA100+ was followed by the departure of several major US asset management firms, including JP Morgan, PIMCO, Invesco, and State Street Global Advisors. Nevertheless, CA100+ pointed to the incorporation of a series of new members as helping to compensate for the losses. Cohen’s appointment may help maintain momentum in the US investor engagement movement, which has lately been suffering from political headwinds. He will also have to address the growing trend for large asset owners to give up on engagement and divest entirely from fossil fuels, with the €160 billion Dutch pension fund Stichting Pensioenfonds Zorg en Welzijn (PFZW) one of the latest to make the move in February this year.
Upon the announcement his appointment Cohen said: “I am honoured to be named chair of the Climate Action 100+ Steering Committee and eager to help guide the initiative through its next phase of investor engagement. Climate Action 100+ was founded to ensure companies take meaningful steps to address the existential financial threats from climate change. There is still more to do to constructively engage with our corporate partners and build upon early successes.”
