Net Zero Asset Managers initiative now has 73 signatories representing $32 trillion in AUM, 36 percent of the global total
Signatories will work in collaboration with clients to achieve 2030 emissions reduction targets and reach net zero by 2050 or sooner
Asset managers representing over $22.8 trillion of assets under management (AUM) today announced that they are new signatories to the Net Zero Asset Managers initiative. Following the launch of the initiative in December 2020, 43 additional asset managers are making new, enhanced commitments 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 degrees Celsius.
The Net Zero Asset Managers initiative now has a total 73 global asset manager signatories, representing $32 trillion in assets under management, representing more than a third (36%) of the total assets under management across the globe. The breadth of signatories signals the determination of investors to play their part in achieving a net zero and resilient future and the global significance of the Net Zero Asset Managers initiative.
Larry Fink, Chairman and CEO, 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.”
Vanguard Chairman and Chief Executive Officer, Tim Buckley, 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.”
Ashish Bhutani, CEO, Lazard Asset Management, said: “The climate crisis we face has societal and financial implications. We have joined the Net Zero Asset Managers Initiative to hold ourselves accountable to deliver on our responsibility to protect our clients’ portfolios from systemic risks such as climate change. Consistent with our fiduciary duty, we will work towards allocating capital to companies with long-term sustainable business practices to deliver better investment outcomes. In partnership with our clients, we will progress towards net zero emissions.”
To ensure real world progress ahead of 2050, the asset manager signatories have committed to set interim targets for 2030, consistent with a fair share of the 50 per cent global reduction in greenhouse gases identified by the Intergovernmental Panel On Climate Change (IPCC) to halt global warming at 1.5 degrees Celsius. Supporting the acceleration of action, signatories will submit an interim target, within a year of joining the initiative, for the proportion of assets to be managed in line with reaching net zero emissions by 2050 or sooner.
Asset managers joining the initiative commit to transparent and rigorous accountability. Signatories will annually report progress against the Task Force for Climate-related Financial Disclosures (TCFD) recommendations, including setting out a climate action plan and submitting this to The Investor Agenda via its partner organisations for review to ensure the approach applied is based on a robust methodology, consistent with the Race to Zero criteria, and action is being taken in line with the commitments.
Drawn from across the world, 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.
Ion Yadigaroglu, Managing Partner, Capricorn Investment Group, said: “We are excited to commit to net zero emissions across the Capricorn Investment Group portfolios. We are seeing numerous opportunities to deploy capital in the fast-growing companies and technologies of the new green economy, from the electrification of cars and trucks and airplanes, to the rollout of storage and battery systems of a fully renewable power grid, to the synthesis of green products from recycled and renewable sources. Far from constraining our investment horizons, we believe that following the science and the ambitions of the Paris Agreement will help us deliver better outcomes for our clients and for society.”
The Net Zero Asset Managers initiative 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 Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). In turn, the initiative is endorsed by The Investor Agenda, of which the investor networks are all founding partners, along with the United Nations Environment Programme Finance Initiative (UNEPFI).
Mindy Lubber, Ceres CEO and President said: "We are building a global movement towards net zero and it continues to grow by the day. Investors, like companies, understand they need to take real action, too. Not only do they need to call on the companies in their portfolios to act on climate change, but they also need to align their own investments with net zero. This is not just about shifting portfolios. It is about taking advantage of the biggest investment opportunities of our time."
The Net Zero Asset Managers initiative is now accredited by the United Nations Framework Convention on Climate Change (UNFCC) Race to Zero campaign. Led by the High-Level Climate Champions for Climate Action, Nigel Topping and Gonzalo Muñoz, Race To Zero mobilises a coalition of leading net zero initiatives, joining 120 countries in the largest ever alliance committed to achieving net zero carbon emissions by 2050 at the latest.
Nigel Topping, UK High Level Climate Champion for COP26, said: "This is the first critical Breakthrough for the Race to Zero and especially the asset management industry, with 73 Asset Managers representing over $32 trillion now committed to the net zero transition. Net zero emissions is fast becoming the guiding star for climate ambition, and this momentum must continue to finance the transition to a zero carbon economy."
To support the governance of the initiative, an advisory group has been appointed to the Net Zero Asset Managers initiative drawn from representatives from initial signatory asset managers. The members of the advisory group appointed are: Wendy Cromwell, Wellington Management; Edward Mason, Generation; Chris Newton, IFM Investors; Catherine Ogden, LGIM; Takeo Omori, Asset Management One; Corinna Orbach, DWS. The advisory group will consider and provide recommendations to the Net Zero Asset Managers founding partners with regard to the operation of the initiative and serve as champions for its work.
Further commitments from other leading asset managers are expected over the coming months.
Notes to Editor
For the full global press release with additional quotes from new signatories, please click here. For the full details of the commitment made by the signatories and a Q&A, please click here and here.
About the Net Zero Asset Managers initiative
The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C; and to supporting investing aligned with net zero emissions by 2050 or sooner. The initiative will be managed globally by six founding partners: 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). The initiative is also endorsed by The Investor Agenda, of which the investor networks are all founding partners. For further information, please visit www.netzeroassetmanagers.org.