The Net Zero Asset Managers initiative is suspending activities as it launches a review due to “recent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions.”
In a statement on its website posted Jan. 13, NZAM said that signatories will be consulted throughout the review process, and during the process is it suspending the tracking of signatory implementation and reporting, as well as removing the commitment statement and list of NZAM signatories from its website and their targets and related case studies.
The suspension of NZAM activities is pending the outcome of the review to “ensure NZAM remains fit for purpose in the new global context,” according to the update.
The announcement comes on the heels of BlackRock’s Jan. 9 letter to clients saying that it would be leaving the initiative. NZAM said in an earlier Jan. 13 statement that “we are disappointed to see any investor withdraw, but as a voluntary initiative, we respect any individual decisions signatories take.”
“Climate risk is financial risk. NZAM exists to help investors mitigate these risks and to realize the benefits of the economic transition to net zero,” the statement said. “NZAM has successfully supported investors globally as they have sought to navigate their own individual paths in the energy transition in line with their fiduciary duties and clients’ long-term financial objectives. NZAM looks forward to continuing to play this constructive role with investors around the world.”
BlackRock, which oversees more than $11 trillion in assets under management, had said in its Jan. 9 letter it decided to leave the Net Zero Asset Managers initiative, in part because membership in the group “caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials,” the New York-based firm said.
As of Jan. 5, NZAM said it had more than 325 signatories representing $57.5 trillion in assets under management. Other money managers on the list include J.P. Morgan Asset Management, T. Rowe Price Group, Capital Group and Amundi.
A spokesperson for JPMAM said the money manager has no plans to leave NZAM, and spokespeople at the other managers could not be immediately reached for comment.