Brookfield among 43 investors to join Net Zero Asset Managers initiative

Brookfield Asset Management is one of 43 asset managers that today committed to become Net Zero by 2050 or sooner by joining the $32trn Net Zero Asset Managers Initiative – tripling the size of the project.

The Canadian investment house found itself in hot water last month when its Vice Chair of Head of ESG and Impact Fund Investing, Mark Carney, claimed it was already a Net Zero company, because of the emissions its renewable energy holdings avoided. The claims sparked accusations of greenwashing from experts at the time, and saw Carney row back on his statements.

Now, the former Governor of the Bank of England has led a new wave of signatories to the Net Zero Asset Managers Initiative, which requires members to support the transition to a Net Zero economy by 2050 or sooner. 

“Brookfield is determined to play a leading role in accelerating the transition to net zero by 2050 or sooner,” he said. “That is why we are delighted to join others as a signatory to the Net Zero Asset Managers initiative, which underscores our long-standing commitment to driving the complementary goals of sustainability and value creation across our investments and operations.”

Other investors to sign up to the pledge include BlackRock and Vanguard – both of whom were accused of being the two largest institutional investors in the coal industry by 29 NGOs, last month.

Signatories are expected to work with their asset owner clients on decarbonisation goals, set interim targets based on the science of the Intergovernmental Panel on Climate Change (which they must review at least every five years), and consider Scope 3 emissions “to the extent possible”. Members must implement a stewardship and engagement strategy, with a clear escalation and voting policy, that is consistent with the 2050 ambition.

Launched in December 2020, the initiative is coordinated by the Principles for Responsible Investment, Institutional Investors Group on Climate Change, the Asia Investor Group on Climate Change, the Investor Group on Climate Change, CDP and Ceres. DWS, Fidelity International, Schroders, UBS Asset Management, Wellington Management and AXA Investment Managers were among the 30 founding members. There are now 73 signatories.

The project mirrors the Net-Zero Asset Owner Alliance, which was launched in 2019 with support from the UN. Standing at 33 members with more than $5trn in assets, the group is currently calling for investment managers to put forward ideas for blended finance vehicles to help channel public and private assets into the climate transition.

Full list of new members:

1. Algebris Investments

2. Allianz Global Investors

3. APG Asset Management 

4. Aviva Investors

5. BlackRock

6. Boston Common Asset Management

7. Boston Trust Walden

8. Brookfield Asset Management

9. Capricorn Investment Group

10. Cardano Holding Limited

11. Danske Bank Asset Management

12. Developing World Markets

13. FullCycle 

14. Invesco Limited

15. J Safra Sarasin Sustainable Asset Management

16. JGP Gestão de Crédito & JGP Gestão de Recursos

17. Jupiter Asset Management

18. La Banque Postale Asset Management

19. La Financière de l'Echiquier 

20. Lazard Asset Management

21. LGT Capital Partners

22. Lombard Odier Investment Managers (LOIM)

23. Macquarie Asset Management

24. Maitri Asset Management

25. Majedie Asset Management

26. Mirova

27. Montanaro Asset Management

28. Newton Investment Management

29. Nissay Asset Management Corporation

30. NN Investment Partners

31. Nykredit Wealth Management

32. Pemberton Capital Advisors

33. Rathbones Greenbank Investments

34. Royal London Asset Management

35. RockCreek

36. SAM Investment Holdings

37. SEB Investment Management

38. Stafford Capital Partners

39. Standard Life Aberdeen

40. Storebrand Asset Management

41. Terra Alpha Investments

42. Tikehau Capital

43. The Vanguard Group