Vanguard withdraws from climate initiative

Boston The world’s largest fund manager Vanguard is withdrawing from an important industry initiative to combat climate change. The US-based financial services firm said on Wednesday it wanted to demonstrate its independence and make its views clearer to investors. In addition, such initiatives could create confusion.

Companies like Vanguard have recently come under pressure from investors and US Republican politicians, for example, for considering environmental, social and good corporate governance (ESG) factors when selecting and managing securities. It is also about the accusation that some initiatives violate antitrust regulations. The phase-out is a setback in trying to get the industry to phase out fossil fuels.