The Net Zero Asset Managers Initiative, a coalition of asset managers committed to supporting the goal of net-zero greenhouse gas emissions by 2050 or sooner, announced today the addition of 41 new members, representing $6.8 trillion in assets.
New signatories to the initiative include some of the world’s leading investors, including Amundi, Sumitomo Mitsui Trust Asset Management, Franklin Templeton, MFS Investment Management, HSBC Asset Management, and the International Business of Federated Hermes.
The Net Zero Asset Managers initiative launched in December 2020 with a group of asset managers committing to support the goal of net-zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C.
The initiative has rapidly grown, reaching 128 members managing $43 trillion in AUM. With today’s announcement, the initiative represents almost half of the asset management sector worldwide in terms of total funds managed.
Signatories to the initiative commit to a series of actions including setting a short-term target of achieving real economy emissions reductions across their investment portfolios by 2030, collaboration with clients on decarbonization goals, creating investment products aligned with the net-zero goal, facilitating increased investment in climate solutions, and confirming that policy advocacy undertaken by the firm is supportive of achieving global net-zero emissions by 2050 or sooner, among others.
In addition, the investors commit to submitting disclosures in line with the Task Force on Climate-related Disclosures (TCFD) recommendations, including the development of a climate action plan, aligned with the UN’s Race to Zero criteria. The signatories have also agreed to include carbon offsets involving long-term carbon removal where there are no technologically or financially viable options to eliminate emissions.
Nicolas Moreau, CEO, HSBC Asset Management said:
“As the world moves to a net-zero carbon future, we are committed to playing our part in addressing climate change, both as a business and as stewards of our clients’ assets. HSBC Asset Management is proud to be part of this important initiative and contribute to an industry-wide push to achieve net zero emissions by 2050.”
Saker Nusseibeh, CBE, CEO, International at Federated Hermes added:
“The position that we occupy as the investment management industry is one of unique influence. By way of intelligent and considered stewardship of capital we have the potential to effect genuine and positive change. Conversely, collective inertia risks compounding the crisis we face to an irreversible extent. It is for these reasons that we have a responsibility to make the right choices, to the benefit of our clients, their end beneficiaries and indeed society at large. We are proud to join the Net Zero Asset Managers initiative as a demonstration of our commitment to accelerate the transition to global net zero emissions.”