A coalition of asset managers aimed at aligning the industry with global climate goals has suspended its activities after its largest member, BlackRock, left amid a US political backlash. The move raised concerns that companies would lower their efforts on climate change but could buy organizers time to review acceptable actions for US fund firms.
BlackRock, which manages $11.5 trillion in assets, departed the Net-Zero Asset Managers (NZAM) initiative on January 9, citing confusion over its climate efforts and legal inquiries from public officials. The group’s exit follows months of escalating pressure from Republican politicians, who criticized its stance on investing in fossil fuel companies.
NZAM was set up in 2020 to promote climate action among asset managers. Its members manage over $57.5 trillion in assets. In a letter to its members, the partner groups behind NZAM said they would conduct a review of its activities to ensure it remains fit for purpose in the new global context.
The initiative’s suspension will allow it to track signatory implementation and reporting while it undergoes the review. It will also remove its commitment statement and list of signatories from its website, pending the outcome of the review.
Net-Zero Asset Managers was launched as executives and investors grew enthusiastic about solving climate change. The group’s decision could prevent a similar flight by asset managers that diminished the influence of another investor climate group last year.
Kathy Mulvey, campaign director for the Union of Concerned Scientists, said groups like NZAM have been an important avenue to keep emissions-reduction targets on track. However, she noted that “clearly the financial sector’s actions to advance emissions reductions and clean energy transition aren’t going away.”
Source: https://www.reuters.com/sustainability/sustainable-finance-reporting/investor-climate-group-suspends-activities-after-blackrock-exit-2025-01-13