J.P. Morgan Chase’s asset management arm has exited the Net Zero Asset Managers initiative, making it the latest manager to depart various environmental, social and governance groups amid political pressure in the U.S.
“J. P. Morgan Asset Management is ending its membership in the Net Zero Asset Managers initiative (NZAMi). NZAMi in January announced that it has paused its operations in the midst of developments in the regulatory environment and client expectations. In light of that, JPMAM has decided to exit,” the firm said in a statement provided by a spokesperson.
The Net Zero Asset Managers Initiative was formed 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; and to supporting investing aligned with net-zero emissions by 2050 or sooner," according to its website.
BlackRock departed the group in January, and a few days later the initiative suspended its activities saying at the time that, “Recent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions have led to NZAM launching a review of the initiative to ensure NZAM remains fit for purpose in the new global context.”
Northern Trust Asset Management also decided to withdraw from Climate Action 100+ group and from the Net Zero Asset Managers initiative in January.
"We announced in January that NZAM is undergoing a review process to ensure it remains fit for purpose in the new global context," the group said in a written statement. "We're unable to comment on the ongoing review process at this time, but we will have more to share in due course."
The initiative has removed its list of signatories from its website as part of its review process.
Reuters first reported that J.P. Morgan Asset Management had left the group.
