Welcome back to The Strawman, the daily climate newsletter that says what everyone’s thinking—just with fewer legal risks. Today, we’re diving into why asset managers are suddenly going quiet on climate, and what’s happening behind closed doors.

Investors Are Going Silent on Climate (But Not Really)

European asset managers, once loud and proud about their climate commitments, are now tiptoeing around the issue like it’s a sleeping bear. Political pressure—especially from the US—is making them think twice before filing climate resolutions or pushing companies to clean up their act.

But just because they’re not shouting it from the rooftops doesn’t mean they’ve stopped caring. Behind the scenes, they’re still crunching the numbers, assessing risks, and figuring out how to meet those pesky 2025 EU climate reporting deadlines. Because let’s face it—climate risk isn’t going away, no matter how quiet they get.

Fear of Backlash: The Climate Conversation Gets Tricky

It’s not just about greenwashing anymore—now it’s about greenhushing. Asset managers are pulling back from public climate action, worried about lawsuits, political backlash, and losing business in certain markets (hello, US Republican states).

The fear is real. European managers are seeing what happened to BlackRock in the US, where climate-friendly policies triggered political outrage and legal threats. In fact, ExxonMobil’s lawsuit against climate activists last year was a wake-up call—one that’s made asset managers extra cautious, even at home in Europe.

But here’s the catch: pension funds and institutional clients still want them to take climate seriously. So, the balancing act continues—how to stay in the game without becoming the target of the next headline-grabbing controversy.

Climate Risk: Ignoring It Won't Make It Go Away

Despite the political heat, one thing remains true: climate change is a financial risk that can’t be ignored. Asset managers know this, which is why they’re still working behind the scenes to integrate climate risk into their strategies—just with a lot less fanfare.

From fossil fuel investments to net-zero targets that now feel wildly ambitious, the industry is navigating murky waters. Some are worried about losing clients if they backtrack, while others are hedging their bets, waiting to see how the regulatory landscape evolves.

At the end of the day, climate action may be getting quieter, but it’s not going anywhere.

The Strawman Takeaway

Climate commitments might be going undercover, but the risks aren’t. Whether they like it or not, asset managers will have to keep grappling with climate challenges—just with a little less noise and a lot more strategy.

Climate change is not an alarm. You can’t hit a snooze button on it.