Wednesday 7 July 2021

Net Zero Asset Managers initiative reaches $43tn in assets

The Net Zero Asset Managers (NZAM) initiative has had 41 new signatories sign up, representing $6.8 trillion (£4.9tn) in assets.

By joining, the asset managers commit to working with their clients to reach net zero alignment across their portfolios by 2050 or sooner, setting 2030 emission reduction targets in the process.

The additional signatories take the total number of investors to 128, collectively managing $43 trillion (£31tn) in assets.

The new investors include HSBC Asset Management, MFS Investment Management and Sumitomo Mitsui Trust Asset Management.

They also commit to implementing climate action plans that are consistent with the UN’s ‘Race to Zero’ campaign and agree to only use offsets that involve long-term carbon removal where there is no financial or technological alternative to mitigate emissions.

Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change who co-manage NZAM, commented: “In just six months nearly half of the global asset management sector has committed to achieving net zero emissions with their clients across the funds they manage.

“This marks a fundamental tipping point across the investment sector and significant boost in efforts to tackle climate change and decarbonise the global economy. There’s a lot more to achieve but the sector is increasingly on a path to a net zero future.”

Nicolas Moreau, CEO at HSBC Asset Management, said: “As the world moves to a net zero carbon future, we are committed to playing our part in addressing climate change, both as a business and as stewards of our clients’ assets.

“HSBC Asset Management is proud to be part of this important initiative and contribute to an industry-wide push to achieve net zero emissions by 2050.”