Global investment manager T. Rowe Price announced today that it has joined the Net Zero Asset As Managers Initiative (NZAMI), a coalition of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050.
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. Since launch, the initiative has grown rapidly to include more than 230 signatories, representing nearly $60 trillion in assets under management. The coalition part of the Glasgow Financial Alliance for Net Zero (GFANZ).
Rob Sharps, CEO and president of T. Rowe Price, said:
“A growing number of our clients are setting net zero targets and require products that meet their needs. Joining the Net Zero Asset Managers initiative enables us to help our clients meet their net zero ambitions in a manner compatible with our fiduciary duty to our clients. We are excited to be a part of this important initiative.”
Signatories to the initiative agree to a broad range of commitments, including working with asset owner clients on decarbonisation goals consistent with an ambition to reach net zero emissions by 2050 or sooner across all AUM, setting interim targets for the proportion of assets to be managed in line with 2050 net zero, and reviewing targets every five years, with a view to ratcheting up the proportion of AUM covered until 100% of assets are included. Signatories also agree to create investment products aligned with net zero emissions by 2050, facilitate investment in climate solutions, provide clients with information and analytics on net zero investing and climate risk and opportunity, and to align stewardship, engagement, voting policy and advocacy policy with net zero goals.
As part of its new announcement, T. Rowe Price said that it is fortifying its commitment to providing investment products for clients with net zero ambitions.
Maria Elena Drew, a Director of Research for Responsible Investing at T. Rowe Price, said:
“In establishing a net zero product range we want to promote a common industry standard, which we believe will ultimately provide better transparency for our clients. It is our intention that our net zero investment products will utilize the Paris Aligned Investment Initiative Net Zero Investment Framework, which is designed to allow for real economy transition to net zero.”