State Street Withdraws From $68 Trillion Climate Investing Group

State Street Corp. is pulling out of the world’s biggest investor group devoted to tackling climate change, saying the organization has hamstrung the firm’s own approach to the matter and its ability to interact with corporations.

The firm’s asset-management arm, with $4.1 trillion of client wealth, concluded that the latest requirements from Climate Action 100+ “are not consistent with our independent approach to proxy voting and portfolio company engagement,” State Street Global Advisors said in a statement Thursday.

The broader finance industry is shifting course on its approach to climate change amid political backlash from US Republicans who have ...