Money managers with $9 trillion in assets under management have launched a net-zero initiative, committing to support the goal of net-zero greenhouse gas emissions by 2050.
The Net Zero Asset Managers initiative, launched Friday, has 30 initial signatories. The group has committed to support the goal of the Paris Agreement, to limit global temperature rises to 1.5 degrees Celsius and to support investing aligned with achieving net-zero emissions by 2050 or sooner.
The launch of the initiative comes ahead of the five-year anniversary of the Paris Agreement on Dec. 12.
Signatories have committed to work in partnership with asset owner clients on decarbonization goals in efforts to reach net-zero emissions by 2050 or sooner across total assets under management. They will set an interim target for the proportion of assets that will be managed in line with achieving net-zero emissions by that date or sooner. This interim target will be reviewed at least every five years "with a view to ratcheting up the proportion of AUM covered until 100% of assets are included," a website for the initiative said.
The initial 30 manager signatories are a.s.r. Asset Management, Anaxis Asset Management, Arisaig Partners, Asset Management One, ATLAS Infrastructure Partners, AXA Investment Managers, BMO Global Asset Management, Calvert Research and Management, CCLA Investment Management, Clean Energy Ventures, DWS, FAMA Investimentos, Fidelity International, Generation Investment Management, Gul International Bank asset Management, Handelsbanken Fonder, IFM Investors, Inherent Group, Kempen Capital Management, Legal & General Investment Management, M&G, New Forests Pty, Nordea Asset Management, Robeco, Sarasin & Partners, Schroders, Swedbank Robus, UBS Asset Management, Wellington Management and WHEB.
More managers are expected to commit over the coming months.
The initiative will be managed globally by six founding partner investor networks: Asia Investor Group on Climate Change, CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change and Principles for Responsible Investment.
"We talk a lot of tipping points in our sector, but 30 of the world's leading asset managers with assets under management of over $9 trillion committing to the goal of net zero by 2050 really can help tip the balance in favour of the global economic transition to net zero," Stephanie Pfeifer, CEO at the IIGCC and founding partner of the initiative, said in a news release. "This is action — not simply words."
"The scale and significance of the asset managers joining the Net Zero Asset Managers initiative sends a clear signal to the wider sector that the financial firepower of institutional investors will be committed to making real progress towards a net zero and resilient future," she added.
Managers also made further commitments under the initiative, including to implement a stewardship and engagement strategy with a clear escalation and voting policy and to create investment strategies aligned with net-zero emissions by 2050. They will also submit disclosures in line with the Task Force on Climate-related Disclosures recommendations and climate action plans through The Investor Agenda investor networks for review.