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The Net Zero Asset Managers initiative has relaunched, with more than 250 asset managers signing up to the revised commitment statement. The organisation had paused its activities when BlackRock and several other managers withdrew ahead of Donald Trump taking office as US president in early 2025.
NZAM said on Wednesday the strong investor backing signals that asset managers around the world continue to recognise and take steps to address climate-related financial risks and opportunities. Signatories independently set targets, develop their own strategies, and report annually on progress.
“Asset managers participating in NZAM send a strong signal to clients, regulators, and other key stakeholders that they are forward-looking, transparent investors, committed to managing climate-related financial risk and opportunity,” said Rebecca Mikula-Wright, who chairs NZAM’s steering committee.
The voluntary initiative said it has also received a public statement from a group of more than 50 asset owners representing over US$3.7tn (£2.7tn) in assets. The statement calls on asset managers to participate in NZAM.
The updated commitment statement “remains anchored in the objectives of the Paris Agreement and the global goal of achieving net zero emissions, while also reflecting diverse jurisdictional realities and maintaining alignment with leading methodologies”, NZAM said.
“It includes greater clarity about dependencies and limitations, and streamlines commitment actions from 10 to seven to better define the levers available to asset managers seeking to implement their individual commitments,” it argued.
NZAM signatories commit, "where consistent with our fiduciary duties and, where applicable, client mandates, fund investment objectives and other legal obligations" to:
Provide clients with information to help them understand and act on climate-related financial risks and opportunities.
Support clients to deliver on their climate goals. This may include increased investment in climate solutions, transition finance and climate-resilient investments.
Set near-term climate targets consistent with the global goal of net zero greenhouse gas emissions, and review them periodically to reflect evolving financial risks, client expectations, and practices.
Implement an investment stewardship strategy to support investees to address material climate risks and opportunities, consistent with our commitment above and positive long-term investment outcomes.
Engage with key actors in the investment system (including, but not limited to, data and index providers, ratings agencies, stock exchanges, and investment consultants) to encourage the availability of products and services that appropriately reflect climate-related risks and opportunities.
Ensure relevant policy advocacy we choose to undertake does not undermine these commitments.
Publicly disclose a plan for implementing these commitments and report annually on the actions we have taken towards these, and any outcomes achieved.
These commitments are much more vague than the original ones, which required signatories to have interim net zero targets by 2030, measuring scope 1, 2 and material scope 3 emissions, creating 2050 net zero products and having a stewardship escalation policy among others.
Targets previously disclosed by signatories remain valid and have been republished unless signatories requested reviews. NZAM is also working with signatories whose targets are still currently in process, supporting them to complete disclosures within the next 12 months.
Non-US managers remain supportive
Several investment houses, mostly European, have expressed their support, as has a Local Government Pension Scheme pool.
Julia French, responsible investor manager at Local Pensions Partnership Investments, said: “The updated statement recognises our fiduciary responsibilities and better reflects the practical realities of putting a net zero commitment into practice today. Ultimately, it strengthens our ability to meet the long-term financial goals of our Partner Funds. We’re looking forward to the initiative getting back up and running.”
The updated commitment statement reflects the evolution of climate investing from an original focus on decarbonising portfolios, towards a broader set of approaches that includes decarbonisation alongside transition investing, climate solutions, adaptation and resilience, said Dan Grandage, chief sustainable investment officer at Aberdeen Investments.
“The new commitment also underscores the productive role stewardship plays in managing financially material climate‑related risks and opportunities,” he added.
Royal London Asset Management reaffirmed its membership of NZAM last month, saying that the updated framework allows for a more flexible and globally applicable foundation for climate‑aligned investing.
Carlota Garcia-Manas, head of climate transition and engagement, said: “While we recognise that some stakeholders may view the revised commitment statement as less prescriptive than the previous version, we believe the changes reflect an effort to create a durable, pragmatic structure that accommodates differing regulatory, contractual, and fiduciary contexts across markets. We remain fully committed to supporting the goals of the Paris Agreement and to managing climate‑related financial risks in the best interests of our clients.”
Royal London AM will pursue “an NZAM+ strategy, maintaining the ambition and integrity of our existing climate commitments even where elements of the updated NZAM framework provide greater discretion”, she noted.
