The Net Zero Asset Managers (NZAM) initiative announced today the addition of more than 90 new asset management firms, representing nearly $11 trillion in assets, as signatories to the organization committed to net zero investing. New signatories* include J.P. Morgan Asset Management, Rockefeller Asset Management and Neuberger Berman.
The initiative also announced a significant expansion in its Asian member base, with new signatories including Mitsubishi UFJ Trust and Banking, Nikko Asset Management, Nomura Asset Management.
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. NZAM is managed globally by six founding partner investor networks: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investor Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI).
The initiative has rapidly grown, reaching 220 members managing over $57 trillion in AUM.
Signatories to the initiative commit to a series of actions including setting an interim target for the proportion of assets to be managed in line with the attainment of net zero emissions by 2050 or sooner, prioritising the achievement of real economy emissions reductions within the sectors and companies in which they invest, 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.
George Gatch, CEO, J.P. Morgan Asset Management, said:
“Addressing climate-related risks and opportunities is a critically important issue in the evolution of the asset management industry. Thoughtful government policy, investments in low-carbon technologies, and collaboration between the public and private sectors are all prerequisites to a transition to a low carbon world. Asset managers, together with our institutional and individual clients, also have an important role to play. We are pleased to have joined the Net Zero Asset Managers Initiative as we seek to work with clients to deliver products and solutions that support their net zero ambitions.”
Rebecca Mikula-Wright, CEO, AIGCC and IGCC, said:
“We welcome the asset managers who have stepped up and committed to reaching net zero emissions, helping the world address the climate crisis. The collaboration of global asset managers is a critical contribution as the world transitions to a decarbonised economy. We look forward to seeing strong action and increasing commitments from investors to achieve their targets.”
The initiative also announced in a progress report that 43 of its investor signatories have announced their interim targets for the proportion of assets managed in line with net zero 2050. Signatories commit to setting interim targets within a year of joining the initiative, and to update regularly until 100% of assets are included. According to the report, out of $11.9 trillion covered AUM, $4.2 trillion, or 35%, is being managed in line with achieving net zero by 2050.
Stephanie Pfeifer, CEO, IIGCC, said:
“It has been remarkable to see the level of commitment coming from the global asset management community when it comes to tackling climate change and decarbonising the global economy. We continue to see a significant number of investors making net zero commitments, but importantly are now also seeing action on those commitments as asset managers begin to share their targets. However, there is still work to do if we are to meet the goals of the Paris Agreement. I look forward to seeing these targets put into action and would encourage the investors who will be disclosing over the coming months to match – or exceed – the ambition set out by the first wave of signatories.”
*The full list of new signatories to the Net Zero Asset Managers initiative:ACTIAM, Addenda Capital, Aegon Asset Management, Aker Horizons, Aktia Bank Plc, Alpha Trust, Angel Oak Capital, Apostle Funds Management, Acadian Asset Management, Arjuna Capital, Artemis Investment Management LLP, Baillie Gifford & Co, BBVA Asset Management, Bentall Green Oak, Bin Yuan Capital, BNK Asset Management, BNP Paribas Asset Management, Border to Coast Pensions Partnership Limited, Brawn Capital, Bregal Investments LLP, Brewin Dolphin, Bridges Fund Management, Brown Advisory, Camco Clean Energy, CANDRIAM, Columbia Threadneedle Investments, Community Capital Management LLC, CQS, Deka Investment GmbH, Deka Vermögensmanagement GmbH, Desjardins Global Asset Management, Dream Unlimited, DUGUUD, ESPIRIA, Ethical Partners, Eurizon Capital, EV Private Equity, Fideuram Asset Management Ireland, Fideuram Asset Management SGR, FSN Capital Partners, GMO, Great Lakes Advisors, Green Investment Partners, Greencoat Capital LLP, Grupo Bancolombia, Hannon Armstrong, Hg, Ibercaja AM, ICG, IG4CAPITAL, Impax Asset Management, Investindustrial, J.P. Morgan Asset Management, LaSalle Investment Management, Linzor Capital Partners, Local Pensions Partnership Investments Ltd, Mackenzie Investments, Maple-Brown Abbott, Metric Credit Partners Pty Limited, Metzler Asset Management, MidOcean Partners, Mitsubishi UFJ Asset Management (UK) Ltd., Mitsubishi UFJ Kokusai Asset Management, Mitsubishi UFJ Trust & Banking Corp, MU Investments, Munich Re Investment Partners, Muzinich & Co. Inc, NEI Investments, Neuberger Berman, Nikko Asset Management Co., Ltd. Nomura Asset Management. Oakham Wealth Management, OP Asset Management, OP Real Estate Asset Management Ltd, Orchard Street Investment Management, Pictet Group, PineBridge Investment, Polymer Capital Management, Quoniam Asset Management, Rathbone Brothers, Rockefeller Asset Management, Rothschild & Co Asset Management Europe, Salm-Salm & Partner GmbH, Savills Investment Management, SKY Harbor Capital Management, SLGI Asset Management Inc., Sprucegrove Investment Management, Stance Capital LLC, Stonepeak, Taaleri Plc, Union Asset Management Holding AG, Vancity Investment Management Ltd. (VCIM) and Veritas Asset Managem