Net Zero Asset Managers Initiative grows to $43trn as more big names pile in

Amundi, HSBC Asset Management and Willis Towers Watson are among 41 new signatories to the Net Zero Asset Managers initiative, bringing the total covered by the commitment to nearly half of the world’s asset management capital. 

The initiative launched in December 2020 and has already garnered 128 backers with $43trn under management, including the ‘Big Three’ investment houses: BlackRock, Vanguard and State Street.

In April, the group, along with the Net Zero Asset Owner Alliance and the Net Zero Banking Alliance were brought together under the umbrella initiative Glasgow Financial Alliance for Net-Zero (GFANZ) by Mark Carney, the UN Special Envoy on Climate Action and Finance and former Governor of the Bank of England. 

Created in partnership with the UNFCCC Climate Action Champions, the UN Race to Zero campaign and the COP26 Presidency, GFANZ – which will be chaired by Carney – aims to accelerate the transition of the global economy to net-zero emissions by 2050 at the latest.

Signatories are required to set science-aligned long-term goals, supplemented by interim targets and action plans. Firms must also advocate for public policy that supports the transition.

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). 

Signatory commitments include annually reporting progress against the TCFD and agreeing only to use offsets that involve long-term carbon removal where there are no technologically and/or financially viable alternatives to eliminating emissions. 

While the news has been widely welcomed, observers note that the Net Zero commitments have to be scrutinised on quality and whether promises are kept over time. 

The full list of investor joining the initiative today is:

Affirmative Investment Management, Aktie-Ansvar, Amundi, Ashmore Group, Asteria Investment Managers, Brandywine Global Investment Management, BT Funds Management NZ, ClearBridge Investments, DIF Management, DSC Meridian Capital, Earth Capital, Evenlode Investment Management, Fiera Capital Corporation, Franklin Templeton, GAM Investments, Green Century Capital Management, HSBC Asset Management, InfraRed Capital Partners, Intech Investments, Investible, Jyske Capital, KBI Global Investors, Kerogen Capital, La Francaise Group, LocalTapiola Asset Management, Man Group, Martin Currie Investment Management, Meridiam, MFS Investment Management, Ninety One, Ownership Capital, Payden & Rygel, RAM Active Investments, River and Mercantile Group, Shinhan Asset Management, Sumitomo Mitsui Trust Asset Management, Swisscanto Invest by Zucherkantonal Bank, Federated Hermes, Troy Asset Management, Vista Equity Partners and Willis Towers Watson.