The Net Zero Asset Management initiative has tripled its representation of assets under management (AUM) with the announcement today of a series of new signatories, including investment management giants BlackRock, Vanguard, Macquarie and Brookfield, among many others.
Larry Fink, Chairman and Chief Executive Officer, BlackRock, said:
“The asset management industry plays an important role as an advisor, at the nexus between asset owners and corporations. Helping investors prepare their portfolios and capture investment opportunities on the path to net zero is one of our greatest responsibilities. BlackRock is proud to put its name behind this initiative, and I am encouraged to see the increasing momentum towards net zero across the public and private sectors.”
Overall, 43 new investors signed on, bringing the initiative to 73 signatories, representing $32 trillion in AUM.
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.
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.
Additionally, signatories agree to submitting disclosures in line with the Task Force on Climate-related Disclosures (TCFD) recommendations and climate action plans for review through The Investor Agenda, an organization developed for the global investor community to accelerate and scale up the actions that are critical to tackling climate change and achieving the goals of the Paris Agreement.
Ben Way, incoming Group Head of Macquarie Asset Management, said:
“Last year we reconfirmed our commitment to tackling climate change by announcing we would manage our portfolio in line with global net zero emissions by 2040. Today, we are proud to continue this journey as we join the Net Zero Asset Managers initiative to work with our industry colleagues to accelerate the transition to a low carbon future. We recognise the need for action is urgent. As a global asset manager, we have a responsibility and opportunity to invest to deliver positive and sustainable impact for everyone.”
The Net Zero Asset Managers initiative is managed globally by six Founding Partner investor networks, including Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). of which the investor networks are all founding partners, along with the United Nations Environment Programme Finance Initiative (UNEPFI).
Emma Herd, Chief Executive Officer, Investor Group on Climate Change (IGCC), said:
“The acceleration of the asset management industry’s response to climate change is critical to delivering on the aims of the Paris Agreement and protecting the global financial system from systemic physical and transitional risks. The expansion of participation in the Net Zero Assets Managers Initiative sends a further signal to the Australian and New Zealand markets that global capital is swinging behind a net zero emissions and resilient future.”
The new signatories to the Net Zero Asset Managers initiative are Algebris Investments, Allianz Global Investors, APG Asset Management , Aviva Investors, BlackRock, Boston Common Asset Management, Boston Trust Walden, Brookfield Asset Management, Capricorn Investment Group, Cardano Holding Limited, Danske Bank Asset Management, Developing World Markets, FullCycle , Invesco Limited, J Safra Sarasin Sustainable Asset Management, JGP Gestão de Crédito & JGP Gestão de Recursos, Jupiter Asset Management, La Banque Postale Asset Management, La Financière de l’Echiquier , Lazard Asset Management, LGT Capital Partners, Lombard Odier Investment Managers (LOIM), Macquarie Asset Management, Maitri Asset Management, Majedie Asset Management, Mirova, Montanaro Asset Management, Newton Investment Management, Nissay Asset Management Corporation, NN Investment Partners, Nykredit Wealth Management, Pemberton Capital Advisors, Rathbones Greenbank Investments, Royal London Asset Management, RockCreek, SAM Investment Holdings, SEB Investment Management, Stafford Capital Partners, Standard Life Aberdeen, Storebrand Asset Management, Terra Alpha Investments, Tikehau Capital, and The Vanguard Group.
Tim Buckley, Chairman and Chief Executive Officer, Vanguard, said:
“Climate change represents a long-term, material risk to our investors’ portfolios. As a steward of our clients’ assets, we recognize the crucial role we and others play in driving real progress on climate risk over time. As part of our ongoing efforts to tackle this important matter, we will continue to engage with portfolio companies, industry regulators, and policymakers, and today we add our commitment to the Net Zero Asset Managers initiative. We look forward to helping drive collaborative and constructive dialogue across our industry to establish win-win solutions for long-term shareholder return and the goal of net-zero emissions by 2050.”
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