Asset managers representing over $22.8 trillion of assets under management (AUM) 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°C.
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.
Ashish Bhutani, CEO, Lazard Asset Management, “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.”
Ion Yadigaroglu, managing partner, Capricorn Investment Group, said, “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.”
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 % global reduction in greenhouse gases identified by the Intergovernmental Panel On Climate Change (IPCC) to halt global warming at 1.5°C. 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.
Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change, “Over a third of the world’s AUM is now committed to securing a net zero and resilient future through the Net Zero Asset Managers initiative. We need to move the narrative to reflect this, no longer is this a coalition of the willing – this is a coalition of the determined. Ambition is matched by acceleration. The Net Zero Asset Managers’ commitment does not simply look to the future in 2050. Interim targets will be set for 2030, both indicating and driving the pace of transition adopted by the signatory asset managers. With 43 new signatories to the initiative, 73 of the world’s leading asset managers are now committed to meeting significant targets in this vital decade. We would encourage all asset managers to join us in securing a net zero and resilient future.”
The Net Zero Asset Managers initiative is now accredited by the United Nations Framework Convention on Climate Change (UNFCC) Race to Zero campaign.