Net Zero Asset Managers Initiative Pauses Activities Following BlackRock Exit

The NZAM suspended activities and removed an online signatory list while reviewing how the organization fits into a ‘new global context.’



The Net Zero Asset Managers initiative, which until last week touted 325 signatories with $57.5 trillion in assets under management that had made a commitment to achieving net-zero portfolios by 2050, will suspend its activities, the organization
announced Monday 

The move to suspend activities comes after BlackRock announced last week that it was leaving the initiative, following political attacks over its environment, social and governance stance, lawsuits, and divestments. Most major U.S. national banks, including JPMorganChase, have also left a similar initiative, the Net Zero Banking Alliance, in recent months.  

“Recent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions have led to NZAM launching a review of the initiative to ensure NZAM remains fit for purpose in the new global context,” the NZAM stated.  

Through its review process, NZAM signatories will be consulted while the initiative tracks signatory implementation and reporting. Pending the outcome of its review, the initiative has also removed from its web site the list of signatories and commitment statements, which also include signatories’ net-zero targets and case studies.  

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“As a voluntary initiative, NZAM has successfully supported investors globally as they have sought to navigate their own individual paths in the energy transition in line with their fiduciary duties and clients’ long-term financial objectives,” NZAM stated.  

Launched in December 2020, the NZAM initiative aimed to support the asset management industry’s commitment to the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with efforts to limit global warming to 1.5 degrees Celsius.  

The initiative is managed by six founding partner groups: Asia Investor Group on Climate Change, CDP [Carbon Disclosure Project] Worldwide, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change and the United Nations’ Principles for Responsible Investment. 

Related Stories: 

BlackRock Exits Net Zero Asset Managers Initiative 

NYCERS Becomes 89th Member of Net-Zero Asset Owner Alliance 

Republican AGs File Suit Against Asset Managers Alleging Coal Repression Scheme 

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