20.04.21

• Ahead of Earth Day and Leaders Summit on Climate, initiative announces it now includes BlackRock, Vanguard, and State Street Global Advisors
• Asset managers promise to work with clients to reach net zero emissions by 2050 or sooner and set 2030 emissions reduction targets

More of the world’s largest asset managers announced today that they are joining the Net Zero Asset Managers initiative, a clear sign that the global movement for a net-zero emissions economy is growing stronger and more determined. The 14 new signatories, which collectively manage nearly $5 trillion in assets and include the world’s third largest asset manager State Street Global Advisors, join 73 other signatories in committing to reach net zero greenhouse gas emissions by 2050 or sooner and to set interim targets for 2030.

Launched in December 2020 with 30 signatories, the global initiative has now grown to include 87 signatories with nearly $37 trillion in assets under management, representing nearly 40 percent of the total assets under management across the globe. The number of signatories has nearly tripled and the total assets under management have quadrupled since the launch. The new signatories include: Alquity Investment Management, BankInvest, Colony Capital, Coutts & Co, EcoFin, Insight Investment, Quinbrook Infrastructure Partners, Ridgewood Infrastructure, Russell Investments, Sage Advisory, State Street Global Advisors, Trillium Asset Management, Valo Ventures, and Vert Asset Management.

With State Street Global Advisors announcing its commitment today, the three largest asset managers in the world are now signatories to the initiative. BlackRock and Vanguard announced their participation in March 2021.

Cyrus Taraporevala, President and Chief Executive Officer, State Street Global Advisors, said: “Climate change poses one of the most serious risks to long-term investors and we are pleased to join this important initiative. We are especially keen to leverage our position as one of the world’s largest asset managers to raise awareness of the systemic risks associated with climate change, and to help all stakeholders navigate the difficult choices we face as we effectively manage the transition risks. The goal of net-zero-carbon emissions by 2050 is consistent with our commitment to drive long-term value on behalf of our clients.”

The formal announcement will be made today at a special event hosted by Ceres with the U.S. Special Presidential Envoy for Climate John Kerry showcasing how private sector finance leaders are key to driving the net-zero transition. The U.S. administration is mobilizing world leaders on April 22-23 for the Leaders Summit on Climate to galvanize efforts by major economies to scale action on the climate crisis.

John Kerry, U.S. Special Presidential Envoy for Climate, said: “The largest financial players in the world recognize energy transition represents a vast commercial opportunity as well as a planetary imperative. As countries around the world move to decarbonize, the large sums these institutions are dedicating to climate solutions reflect a growing understanding that the transition to a low-carbon global economy will be critical for their business models. To be credible and effective as market signals, these financial commitments should adhere to clear definitions, metrics, and reporting. Ultimately, the transition to this new economy will create a massive number of new jobs and increase our collective ability to tackle climate change.”

The asset managers commit to set interim targets for 2030, consistent with a fair share of the 50% global reduction in emissions identified as a requirement in the IPCC special report to limit increase in global temperatures to no more than 1.5-degrees Celsius. They will be asked to submit an interim target, within a year of joining the initiative, for the proportion of assets to be managed in line with reaching net-zero emissions by 2050 or sooner.

Signatories will also commit to transparent and rigorous accountability. They will annually report progress against the Task Force for Climate-related Financial Disclosures (TCFD) recommendations, including implementing a climate action plan and ensuring their plans are based on a robust methodology, consistent with the Race to Zero criteria, and action is being taken in line with the commitments.

Abdallah Nauphal, Chief Executive Officer at Insight Investment, said: “Climate change is one of the greatest challenges of our time and we have been encouraged to see governments and businesses grapple with its far-reaching implications by introducing meaningful policy and initiatives ahead of COP26 later this year. We are committed to helping our clients manage the risks of climate change and to transition their portfolios in a manner that can also deliver financial and liability objectives.”

The Net Zero Asset Managers initiative is managed globally by six founding partner investor networks: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). In turn, the initiative is endorsed by The Investor Agenda, of which the investor networks are all founding partners, along with the United Nations Environment Programme Finance Initiative (UNEP FI).

Mindy Lubber, Ceres CEO and President, said: “The accelerating growth of the Net Zero Asset Managers initiative signals a great awakening in the finance sector. The largest financial leaders in the world are increasingly embracing the inescapable reality that climate change is a systemic risk. We know investments impact climate change just as climate change impacts investments. That’s why we welcome this new wave of commitments from the largest asset managers in the world — all of whom are joining this ambitious movement of real action in the U.S. and around the globe.”

The Net Zero Asset Managers initiative is accredited by the United Nations Framework Convention on Climate Change (UNFCCC) Race to Zero campaign.

The initiative has an advisory group drawn from representatives from signatory asset managers. Members include: Takeo Omori, Asset Management One; Corinna Orbach, DWS; Edward Mason, Generation; Chris Newton, IFM Investors; Catherine Ogden, LGIM; and Wendy Cromwell, Wellington Management. The advisory group provides recommendations to the initiative’s Steering Committee with regard to governance and operations and serves as champions for its work.

Additional quotes from the new signatories:

Paul Robinson, Founder, Alquity Investment Management, said: “At Alquity, we have always believed that how we deploy our capital shapes our societies. Asset managers are a critical component in ensuring the reversal of climate change – nothing happens without capital, therefore the decisions we make will be determinant in the survival of the planet as we know it. We need all asset managers to ensure that our capital is aligned with reversing the impacts of climate change. It is possible for us, and the businesses we invest in, to use our skills, innovation and determination to build a sustainable future. We also believe this transition must be just and fair, creating a more equitable and sustainable economy for all.”

Lars Bo Bertram CEO of BankInvest, said: “Reallocating our capital in a responsible and sustainable direction can make a huge difference in creating a better world. Done carefully, it can even improve both short and long term financial return – so why hesitate? Combining our efforts, asset managers play a crucial role in driving the needed progress and identifying investment opportunities to support the transition to a sustainable future. BankInvest is eager to deliver on this commitment to the Net Zero Asset Managers initiative and to help our clients in getting their investments on a net-zero pathway.”

Peter Flavel, CEO, Coutts & Co, said: “Climate change is one of the biggest challenges we face and it represents a serious material risk for our clients, society and planet. We recognise the important role the asset management industry plays in addressing climate change and are proud to join the Net Zero Asset Managers initiative to accelerate industry action on climate. We have already incorporated climate into our Purpose, and are committed to further embed our net zero ambitions into our asset allocation decisions and stewardship activity.”

Marc Ganzi, CEO, Digital Colony and President & CEO, Colony Capital, said: “At Colony Capital and Digital Colony, responsible investing is in our DNA. We know that we have to tackle the climate crisis with the same vigor and tenacity that we approach our ownership of some of the leading digital infrastructure businesses in the world. That’s why we have a goal of achieving net zero emissions across the Firm and our portfolio companies by 2030. The Net Zero Asset Manager’s initiative is completely consistent with our corporate objectives and we are pleased to announce our commitment.”

Brent Newcomb, President of Ecofin, said: “The world is awakening to the new reality that we must transition from linear to circular economies, meaning we cannot use the planet’s resources as if they are endless. As a sustainable investment firm, Ecofin is excited to make our commitment to a net zero future. We join other leaders in the sustainable finance community as we collectively chart a necessary and unyielding path to address this global crisis. The Net Zero Asset Managers initiative will bring together shareholder activism, corporate responsibility and the power of finance to mark a significant milestone in our ongoing sustainability revolution.”

David Scaysbrook, Co-Founder and Managing Partner, Quinbrook Infrastructure Partners, said: “Quinbrook is pleased to join such a powerful collective that can bring about impactful and accelerated change. Our firm was established for the very purpose of tackling the ‘net zero’ challenge we all face so it’s only fitting that we make this pledge to continue to expand our impact and play our part.”

Ross Posner, Managing Partner, Ridgewood Infrastructure, said: “Ridgewood Infrastructure is proud to be among the group of leading asset managers working towards, and formally committing to achieving the goal of, net zero greenhouse gas emissions by 2050.”

Michelle Seitz, Chairman and CEO of Russell Investments, said: “At Russell Investments, responsible investing is a core component of our investment approach. Climate change, along with the risk it poses to the value of our investors’ portfolios, is a challenge that our industry needs to tackle. And the time to act is now. As fiduciaries and responsible stewards of our clients’ capital, we’re fully committed to collaborating with investment managers, peers, and policymakers on this journey to net zero.”

Bob Smith, President and CIO of Sage Advisory, said: “What we do in the next decade to limit emissions will be critical to the future, which is why every country, sector, industry, and each one of us must work together to find ways to cut the carbon we produce. Sage is committed to this initiative and looks forward to partnering with other like-minded organizations in our effort to achieve global net zero emissions.”

Matt Patsky, CEO, Trillium Asset Management, said: “With this commitment, we are adding our voice to an important initiative which recognizes that the world is out of time. We believe that investing in companies that are mired in outdated ways of thinking, ignoring both climate risks and the opportunities of transition, exposes portfolios to unnecessary, material risks. And, as long-term, sustainability-oriented investors, we recognize that investor capital, such as we are entrusted to invest on behalf of our clients, needs to reward companies making the transition from the old world to the new, and avoid those that aren’t. Our climate demands it, and our clients deserve it.”

Scott Tierney, Managing Partner, Valo, said: “Innovators and investors aligned together are our best strategy to achieve net zero.”

Samuel Adams, CEO, Vert Asset Management, said: “Climate change is the challenge of our time so reducing emissions should be the goal of all stakeholders. Investors have an important role in influencing companies to commit to net zero pathways. We join the Net Zero Asset Managers initiative to amplify the investor voice around our common purpose of accelerating the transition to a net-zero economy.”

Additional quotes from founding partner network CEOs:

Rebecca Mikula-Wright, Executive Director of the Asia Investor Group on Climate Change, said: “As we head towards COP26 every new commitment counts, and we expect to see more of these pledges and the actions that will follow from asset managers active in Asia. The response in financial markets to climate risk must continue to accelerate if we are to meet our shared Paris Agreement goals, and commitments made under the Net Zero Asset Managers initiative can go a long way to accelerating this change.”

Paul Simpson, Chief Executive Officer of CDP, said: “As a founding partner of the Net Zero Asset Managers initiative, CDP is delighted to see it continue to gather strong momentum and support. For more than 20 years, CDP has empowered the global asset management community with the tools to drive environmental transparency and action. As a sector that plays a critical role in the transition to a net zero carbon economy, CDP is encouraged by the growing number of asset managers committing to decarbonize their portfolios, including the three largest asset managers in the world. We look forward to seeing this translate into science-based emissions reduction targets, investment activity that is aligned with the Paris Agreement and near-term accountability and reporting.”

Emma Herd, Chief Executive Officer of the Investor Group on Climate Change, said: “The continued growth of the Net Zero Asset Managers initiative is a reflection of the rapid shift occurring in capital markets towards the net zero emissions transition. In particular, we welcome Quinbrook Infrastructure Partners as one of the latest signatories to the initiative and look forward to more commitments emerging from Australia and New Zealand in coming months.”

Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change, said: “The determination of the investment community to play its part in securing a net zero and resilient future is evident in the commitments being made through the Net Zero Asset Managers initiative. All asset managers are signing up to a rigorous commitment with clear interim target setting ensuring there is significant progress made in the short term as well as long term. We welcome the new signatories announced today and encourage all asset managers to join us in driving real world change aligned with the goals of the Paris Agreement.”

Fiona Reynolds, Chief Executive Officer of PRI, said: “It’s encouraging to see the momentum for net-zero commitments from the asset management sector and it’s critical that this momentum continues as we approach COP26 and beyond. Asset managers who manage money on behalf of their clients have an essential role to play as we transition to a zero carbon economy. To be successful, however, asset managers need to ensure that they are equipped with the skills, talent, tools and knowledge required. Leadership and innovation, working in partnership with clients, increased ambition, cultural alignment and accountability are essential if we are to succeed and reach net-zero by 2050.”

Notes to Editor:

For the full details of the Net Zero Asset Managers commitment and a Q&A, please click here and here.

About the Net Zero Asset Managers initiative
The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C; and to supporting investing aligned with net zero emissions by 2050 or sooner. The initiative is managed globally by six founding partners: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). The initiative is also endorsed by The Investor Agenda, of which the investor networks are all founding partners. For further information, please visit www.netzeroassetmanagers.org.

29.03.21

• 43 new investor signatories to Net Zero Asset Managers initiative will work in collaboration with clients to achieve 2030 emissions reduction targets and reach net zero by 2050 or sooner
• The Net Zero Asset Managers initiative now has a total 73 signatories representing $32 trillion in assets under management (AUM), 36 per cent of the global total¹
• Net Zero Asset Managers initiative is now accredited by the UNFCCC Race to Zero campaign

Asset managers representing over $22.8 trillion of assets under management (AUM) today announced that they are new signatories to the Net Zero Asset Managers initiative. Following the launch of the initiative in December 2020, 43 additional asset managers are making new, enhanced commitments 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°C.

The Net Zero Asset Managers initiative now has a total 73 global asset manager signatories, representing $32 trillion in assets under management, representing more than a third (36%)2 of the total assets under management across the globe. The breadth of signatories signals the determination of investors to play their part in achieving a net zero and resilient future and the global significance of the Net Zero Asset Managers initiative.

Ashish Bhutani, CEO, Lazard Asset Management: “The climate crisis we face has societal and financial implications. We have joined the Net Zero Asset Managers Initiative to hold ourselves accountable to deliver on our responsibility to protect our clients’ portfolios from systemic risks such as climate change. Consistent with our fiduciary duty, we will work towards allocating capital to companies with long-term sustainable business practices to deliver better investment outcomes. In partnership with our clients, we will progress towards net zero emissions.”

Ion Yadigaroglu, Managing Partner, Capricorn Investment Group, said: “We are excited to commit to net zero emissions across the Capricorn Investment Group portfolios. We are seeing numerous opportunities to deploy capital in the fast-growing companies and technologies of the new green economy, from the electrification of cars and trucks and airplanes, to the rollout of storage and battery systems of a fully renewable power grid, to the synthesis of green products from recycled and renewable sources. Far from constraining our investment horizons, we believe that following the science and the ambitions of the Paris Agreement will help us deliver better outcomes for our clients and for society.”

To ensure real world progress ahead of 2050, the asset manager signatories have committed to set interim targets for 2030, consistent with a fair share of the 50 per cent global reduction in greenhouse gases identified by the Intergovernmental Panel On Climate Change (IPCC) to halt global warming at 1.5°C. Supporting the acceleration of action, signatories will submit an interim target, within a year of joining the initiative, for the proportion of assets to be managed in line with reaching net zero emissions by 2050 or sooner.

Asset managers joining the initiative commit to transparent and rigorous accountability. Signatories will annually report progress against the Task Force for Climate-related Financial Disclosures (TCFD) recommendations, including setting out a climate action plan and submitting this to The Investor Agenda via its partner organisations for review to ensure the approach applied is based on a robust methodology, consistent with the Race to Zero criteria, and action is being taken in line with the commitments.

Drawn from across the world, the new signatories to the Net Zero Asset Managers initiative are: Algebris Investments, Allianz Global Investors, APG Asset Management , Aviva Investors, BlackRock, Boston Common Asset Management, Boston Trust Walden, Brookfield Asset Management, Capricorn Investment Group, Cardano Holding Limited, Danske Bank Asset Management, Developing World Markets, FullCycle , Invesco Limited, J Safra Sarasin Sustainable Asset Management, JGP Gestão de Crédito & JGP Gestão de Recursos, Jupiter Asset Management, La Banque Postale Asset Management, La Financière de l’Echiquier , Lazard Asset Management, LGT Capital Partners, Lombard Odier Investment Managers (LOIM), Macquarie Asset Management, Maitri Asset Management, Majedie Asset Management, Mirova, Montanaro Asset Management, Newton Investment Management, Nissay Asset Management Corporation, NN Investment Partners, Nykredit Wealth Management, Pemberton Capital Advisors, Rathbones Greenbank Investments, Royal London Asset Management, RockCreek, SAM Investment Holdings, SEB Investment Management, Stafford Capital Partners, Standard Life Aberdeen, Storebrand Asset Management, Terra Alpha Investments, Tikehau Capital, and The Vanguard Group.

Larry Fink, Chairman and CEO, BlackRock: “The asset management industry plays an important role as an advisor, at the nexus between asset owners and corporations. Helping investors prepare their portfolios and capture investment opportunities on the path to net zero is one of our greatest responsibilities. BlackRock is proud to put its name behind this initiative, and I am encouraged to see the increasing momentum towards net zero across the public and private sectors.”

Vanguard Chairman and Chief Executive Officer, Tim Buckley: “Climate change represents a long-term, material risk to our investors’ portfolios. As a steward of our clients’ assets, we recognize the crucial role we and others play in driving real progress on climate risk over time. As part of our ongoing efforts to tackle this important matter, we will continue to engage with portfolio companies, industry regulators, and policymakers, and today we add our commitment to the Net Zero Asset Managers initiative. We look forward to helping drive collaborative and constructive dialogue across our industry to establish win-win solutions for long-term shareholder return and the goal of net-zero emissions by 2050.”

Hiroshi Ozeki, President and Chief Executive Officer, Nissay Asset Management Corporation: “We are very pleased to participate in the Net Zero Asset Managers initiative. As a global citizen, we believe that climate change is an urgent and significant issue to be resolved, and that it is our social responsibility as an investor to pass on the irreplaceable global environment to the next generation. Needless to say, this issue cannot be resolved by one firm alone. By taking collective action with all other members, Nissay Asset Management is strongly committed to accelerate the transition towards the goal of net zero greenhouse gas emissions by 2050 or sooner and we will actively be involved in building a more sustainable society.”

The Net Zero Asset Managers initiative is managed globally by six founding partner investor networks: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). In turn, the initiative is endorsed by The Investor Agenda, of which the investor networks are all founding partners, along with the United Nations Environment Programme Finance Initiative (UNEPFI).

Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change: “Over a third of the world’s AUM is now committed to securing a net zero and resilient future through the Net Zero Asset Managers initiative. We need to move the narrative to reflect this, no longer is this a coalition of the willing – this is a coalition of the determined. Ambition is matched by acceleration. The Net Zero Asset Managers’ commitment does not simply look to the future in 2050. Interim targets will be set for 2030, both indicating and driving the pace of transition adopted by the signatory asset managers. With 43 new signatories to the initiative, 73 of the world’s leading asset managers are now committed to meeting significant targets in this vital decade. We would encourage all asset managers to join us in securing a net zero and resilient future.”

The Net Zero Asset Managers initiative is now accredited by the United Nations Framework Convention on Climate Change (UNFCC) Race to Zero campaign. Led by the High-Level Climate Champions for Climate Action, Nigel Topping and Gonzalo Muñoz, Race To Zero mobilises a coalition of leading net zero initiatives, joining 120 countries in the largest ever alliance committed to achieving net zero carbon emissions by 2050 at the latest.

Nigel Topping, UK High Level Climate Champion for COP26, said: “This is the first critical Breakthrough for the Race to Zero and especially the asset management industry, with 73 Asset Managers representing over $32 trillion now committed to the net zero transition. Net zero emissions is fast becoming the guiding star for climate ambition, and this momentum must continue to finance the transition to a zero carbon economy.”

Satish Bapat, Chief Executive Officer, NN Investment Partners: “As investors, we acknowledge the impacts of climate change on society and our investments. Together with our peers, we have a role to play in limiting this impact. We strive to contribute to the commitments laid out by the Paris Agreement and Dutch Climate Agreement, in line with our responsible investing beliefs and investment goals. We are pleased to join the Net Zero Asset Managers initiative, and to collaborate with our clients and the companies we invest in, to further accelerate this transition towards global net zero emissions.”

To support the governance of the initiative, an advisory group has been appointed to the Net Zero Asset Managers initiative drawn from representatives from initial signatory asset managers. The members of the advisory group appointed are: Wendy Cromwell, Wellington Management; Edward Mason, Generation; Chris Newton, IFM Investors; Catherine Ogden, LGIM; Takeo Omori, Asset Management One; Corinna Orbach, DWS. The advisory group will consider and provide recommendations to the Net Zero Asset Managers founding partners with regard to the operation of the initiative and serve as champions for its work.

Andrew Carter, CEO, Royal London Asset Management: “RLAM is committed to being a responsible steward of our clients’ assets and we must play our part in achieving the goals of the Paris Agreement to prevent climate change becoming a crisis. We are proud to say we support the launch of the Net Zero Asset Manager Initiative. As part of this we commit to aligning our investments to net zero by 2050 and to engaging with the companies we invest in to ask them to do the same.”

Further commitments from other leading asset managers are expected over coming months.

– ENDS –

Further supporting comment

Signatory CEO comment

Asia:

• Maitri Asset Management – Manish Tibrewal, Chief Executive Officer of Maitri Asset Management: “Joining the Net Zero Asset Managers initiative is a further extension of Maitri’s commitment to be a responsible, principles-based asset manager who is committed to helping achieve the goals of the Paris Agreement, mitigate climate risk and seize the enormous investment opportunities presented by the clean energy transition. Addressing climate change will require global collaboration, and asset managers have a significant opportunity to work with our clients, peers and stakeholders on this shared journey to net zero.”

Australasia:

• Macquarie Asset Management – Ben Way, CEO, Macquarie Asset Management: “Last year we reconfirmed our commitment to tackling climate change by announcing we would manage our portfolio in line with global net zero emissions by 2040.  Today, we are proud to continue this journey as we join the Net Zero Asset Managers initiative to work with our industry colleagues to accelerate the transition to a low carbon future. We recognise the need for action is urgent. As a global asset manager, we have a responsibility and opportunity to invest to deliver positive and sustainable impact for everyone.”

Europe:

• Aviva Investors – Dr Steve Waygood, Chief Responsible Investment Officer, Aviva Investors: “The climate crisis, and reaching net zero, is without doubt the biggest challenge facing humanity. Only by harnessing the power of capital markets do we stand a chance of delivering what the science tells us we must do to stabilise climate change and prevent it from accelerating beyond our control. Aviva Investors will play our full role and we warmly welcome the creation of the Net Zero Asset Manager Initiative.”
• Algebris Investments – Davide Serra, Founder and CEO, Algebris Investments: “As investment managers, when taking asset allocation decisions, we recognise the role we play as a powerful engine behind a just transition towards a greener, fairer and more sustainable economy. This shift will depend on each and every one of us and it is crucial, especially for future generations, that businesses have a clear action plan. We are proud to join the Net Zero Asset Managers initiative, to accelerate the transition towards global net zero emissions while supporting our clients set and meet decarbonisation goals for their portfolios.”
• Allianz Global Investors – Tobias Pross, CEO of Allianz Global Investors: “Climate change is one of our planet’s most pressing challenges, and AllianzGI believes that asset managers should take a more active role. Following our recent announcement of our new stewardship approach: Climate engagement with outcome, aimed at engaging with companies on the climate transition pathway towards a low carbon economy, we are pleased to be joining the Net Zero Asset Managers initiative. This is another milestone in our sustainability pathway, that complements the commitment made by Allianz Group in 2019.”
• APG Asset Management – Peter Branner, Chief Investment Officer, APG Asset Management: “APG Asset Management, on behalf of pension fund clients, is committed to contribute to the goal of the Paris agreement to keep global warming limited to 1,5 degrees. This ambition is totally aligned with the Net Zero Asset Managers initiative, hence why we are pleased to join the group. Our clients have already established climate-related targets for 2025, such as investing in clean and affordable energy and reducing the carbon footprint in listed equities. This commitment empowers APG to advance this journey together with our clients. I am thrilled to see how our investment teams continue to identify climate related investments across both liquid and private assets in all regions we operate. It is encouraging in its own right and comforting for our clients to see that this happens without compromising return objectives.”
• Cardano – Kerrin Rosenberg, CEO, Cardano UK “We support the Paris Climate Agreement of aiming to limit global warming to +1.5C versus preindustrial levels. We have committed our investment portfolios to net zero carbon emissions by 2050 and we will set ambitious interim targets. We have signed up to the Net Zero Asset Managers Initiative to share best-practice, coalesce around common methodologies, and to help send clear messages to our regulators and the companies we own of the need for a fast, smooth climate transition.”
• Danske Bank – Christian Heiberg, Head of Asset Management, Danske Bank: ”As an investor and distributor of investment products, we have a vital role to play in driving the low-carbon transition, thereby helping society reach is climate ambitions. By signing the Net Zero Asset Manager Initiative, we have made an ambitious commitment for our own climate efforts – together with our peers we want to facilitate measurable, sustainable change.”
• Invesco – Marty Flanagan, President & CEO of Invesco: “The implications of climate change are far-reaching and will have a transformational impact on markets, the global economy, society, governments and many other aspects of our lives.  Investment managers have an important role to play in supporting investments aligned with global efforts to reduce the impact of climate change on our planet.  As part of Invesco’s commitment to being a leading global ESG investment manager, we are pleased to join the Net Zero Asset Managers initiative, which will be a critical component of our efforts in this important work.”
• J Safra Sarasin – Oliver Cartade, Head of Asset Management & Institutional Clients Division, J. Safra Sarasin Sustainable Asset Management: “J. Safra Sarasin Sustainable Asset Management is committed to contributing to the achievement of the Paris Agreement. In 2020, we published our Climate Pledge aiming for a carbon-neutral outcome for assets under management by 2035. By joining the Net-Zero Asset Managers Initiative, we reinforce our commitment and actively work with the financial industry towards net-zero.”
• Andrew Formica, CEO, Jupiter Asset Management – “The transition to net zero carbon emissions is imperative, and we have a responsibility to work together as an industry and a society to tackle climate change. Following the announcement of Jupiter’s commitment to net zero at both a company and investment level, we are pleased to be a part of this important initiative working on behalf of our clients and alongside so many others asset managers to drive real progress towards these transformational goals.”
• La Banque Postale Asset Management – Emmanuelle Mourey, President, La Banque Postale Asset Management (LBP AM): “We have completed our 100% SRI transformation in 2020. At the same time, the challenges posed by the pandemic have increased the climate emergency. As a conviction and responsible asset manager, LBP AM is developing an ambitious climate strategy alongside organizations such as the Net Zero Asset Managers Initiative, driven by rigorous sectoral policies and investment in companies engaged in a fair and demanding transition of their activities.”
• La Financière de l’Echiquier – Bettina Ducat, CEO, La Financière de l’Echiquier : “As a responsible and committed investor for 30 years, La Financière de l’Echiquier is determined to act towards accelerating the transition to carbon neutrality and to promote the marketing of low-carbon products and services. Our determination is the reason for our commitment to the Net Zero Asset Management Initiative, a demanding and transparent global initiative, co-constructed with companies, in line with our commitments and actions deployed in the fight against climate change.”
• LGT Capital Partners – Roberto Paganoni, CEO, LGT Capital Partners: “As a long-term, family-owned and principal investor sustainability and ESG integration has been part of our business and investment processes for more than 15 years. We have been actively engaging with organizations to further the cause of sustainability in the financial industry continuously. Now, a logical milestone and next step is to commit to invest in alignment with the Paris Agreement in order to achieve net zero emissions by 2050 or sooner. Through the capital we invest, we support combatting climate change.”
• Lombard Odier Investment Managers (LOIM) – Hubert Keller, Managing Partner, Lombard Odier: “The race to a net zero economy is a rapidly-unfolding transition of immediate financial relevance to all investors. Decarbonisation cannot be achieved merely by offsets or asset re-allocations but requires reductions in the real economy, requiring a detailed understanding of the transition pathways and trajectories facing companies in each industry individually. At Lombard Odier, we are committed to developing investment processes that allow us to assess the alignment of our portfolios to this transition ahead, and through active management contribute to accelerating the transition to net zero.”
• Majedie Asset Management – Rob Harris, CEO, Majedie Asset Management: “Climate change is the defining challenge for our generation. At Majedie, we have a clear responsibility to our clients to ensure our investment activities consider the material risks and opportunities posed by climate change from all angles. Our commitment to the Net Zero Asset Managers initiative is another important step we’re taking to move towards a more sustainable future.”
• Montanaro Asset Management – Cedric Durant des Aulnois, CEO,  Montanaro: “With every year that passes, the actions needed to address the climate crisis become greater.  Montanaro has been supporting the climate agenda for many years, most notably through the investments made in our Better World Fund, but real change also requires collective action.  With $9 trillion under management, the Net Zero Asset Managers initiative has the means to make a significant difference in addressing the greatest crisis humanity has ever faced.”
• Newton Investment Management – Andrew Downs, Interim CEO, Newton Investment Management: “Being a responsible and purposeful owner, on behalf of our clients, means having clear accountability and encouraging change at companies in which we invest to help drive the world towards a more sustainable future for all.
  At Newton, responsible investing has been part of our DNA since the 1970s, and signing the Net Zero Asset Managers initiative is a natural next step in demonstrating our commitment to the goal of net-zero greenhouse gas emissions by 2050, and to supporting investments aligned with net-zero emissions by that time.”
• Nykredit Asset Management – Peter Kjærgaard, Head of Wealth Management, Nykredit: “As asset managers, we play an important role in leading the way towards a sustainable future, channelling capital towards companies that are committed to reducing carbon emissions and holding them responsible for it. We have worked systematically with sustainable investments for more than a decade, and we are fully committed to achieving net zero carbon emissions by 2050 together with the other signatories of the Net Zero Asset Management initiative. Through the Nykredit group and together with the local and regional banks in the Sparinvest collaboration, we are in contact with clients across all of Denmark, as well as internationally, and we are looking forward to accelerating our efforts to help our clients invest in line with the Paris-agreement.”
• Pemberton Capital Advisors – Symon Drake-Brockman, Managing Partner, Pemberton: “At Pemberton, we see ourselves as stewards of responsible investment, supporting our borrowers and sponsors in building value through sustainable growth. The Net Zero Asset Managers initiative fits in with our firm’s commitment to focus on the environmental and social impact we can have together. To this end, we are proud to be carbon neutral firm and look forward to working with investors, borrowers and peers on future decarbonisation efforts.”
• Rathbone Greenbank Investments – John David, Head of Rathbone Greenbank Investments: “The net zero asset managers initiative provides us with a clear roadmap to catalyse the continued transition of our investment portfolios to net zero greenhouse gas emissions by 2050 or sooner. It represents an opportunity for us to build on our longstanding approach to climate-aligned investing at Rathbone Greenbank – to advance our understanding of climate risk, maximise on exciting opportunities to invest in the energy transition and continue to empower our clients to invest their money as a force for good through our engagement activities.”
• Royal London Asset Management – Andrew Carter, CEO, Royal London Asset Management: “RLAM is committed to being a responsible steward of our clients’ assets and we must play our part in achieving the goals of the Paris Agreement to prevent climate change becoming a crisis. We are proud to say we support the launch of the Net Zero Asset Manager Initiative. As part of this we commit to aligning our investments to net zero by 2050 and to engaging with the companies we invest in to ask them to do the same.”
• Santander Asset Management – Mariano Belinky, Global CEO, Santander Asset Management: “At Santander Asset Management we are firmly committed to the initiatives looking to reduce carbon emissions, support the ecological transition and contribute to a more sustainable world. Being one of the asset managers that have signed up to the Net Zero Asset Managers initiative is another step towards our goal of becoming leaders and a reference in ESG both in Europe and Latin America. This commitment also represents an opportunity to continue offering innovative investment solutions to our clients, aligned with their current interests and social concerns.”
• SEB Investment Management – Javiera Ragnartz, CEO, SEB Investment Management: “For SEB Investment Management, addressing climate change and the huge challenge that it means for companies, people and the planet, is a strategic priority. We aim for assets under management to be net zero by 2040, and for this purpose, joining the Net Zero Asset Managers initiative is key. We look forward to collaborating with our peers and with investee companies in working towards the common goal of net zero.”
• Stafford Capital Partners – Angus Whiteley, CEO, Stafford Capital Partners: “The challenges of climate change will be addressed by embracing the transition to a net zero GHG emissions economy, and the sooner the transition takes place, the better the outcomes will be. As an investor in global forestry and low carbon solutions Stafford Capital Partners is delighted to be able to commit to this important initiative, and to continue providing solutions that not only deliver financial returns, but help achieve the transition to net zero. We are certified as Carbon Neutral as a company, and we are committed to achieving this goal across our portfolio by 2050 or sooner.”
• Standard Life Aberdeen – Stephen Bird, CEO, Standard Life Aberdeen: “We are delighted to join the Net Zero Asset Manager initiative today and demonstrate our support for the global net zero 2050 goal. This is another significant milestone in our commitment to play a constructive role in the decarbonisation of the global economy and enable our clients to reach their net zero ambitions. To drive that change, we are developing a range of net zero solutions and look forward to working with our clients to increase the percentage of our AUM that is aligned to net zero over time.”
• Storebrand Asset Management – Jan Erik Saugestad, CEO, Storebrand Asset Management: “There is a lot we as investors and asset managers can do on our own in accelerating the green transition, but we are much more powerful in alliances. It is when investors, asset managers and governments join forces we are most successful in creating action on the ground. On climate action, we win or lose together. Our commitment to become net-zero by 2050 dates back to 2019 and we have set targets to reduce our emissions by over 30 % by 2025. Joining forces with fellow Asset Managers on this journey serves as a powerful catalyst and inspiration. Partnership is the new leadership.”
• Tikehau Investment Management – Mathieu Chabran, co-founder, Tikehau Capital: “5 years after the signature of the milestone Paris Agreement, there is still much progress to be made in order to meet the targets set. Asset managers worldwide have a major role to play in accelerating the transition towards a more sustainable and resilient economy. The Net Zero Asset Managers initiative, composed of asset managers representing 36% of assets under management worldwide, is a demonstration of the kind of commitment that the sector needs to continue making in the years to come. Tikehau Capital is proud to sign this initiative and reaffirm its conviction that economic growth and fighting climate change go hand-in-glove. Actively investing a model that better respects our environment is essential.”

North America:

• Boston Common Asset Management – Lauren Compere, Managing Director of Boston Common Asset Management, said: “Joining the Net Zero Asset Managers initiative and committing to align our investing to a net zero carbon emissions by 2050 trajectory and a 1.5 degrees Celsius alignment is the next logical step for us. We look forward to collaborating under this initiative given that climate change is a systemic risk for every investor.”
• Boston Trust Walden – Amy Augustine, Director of ESG Investing at Boston Trust Walden, said: “The need for more collective, transformative action to manage and mitigate climate risk is clear given the current trajectory of global emissions. For decades, Boston Trust Walden has been instrumental in advancing climate solutions with company and policy influencers, both directly and in coalition. We are pleased to join the Net Zero Asset Managers initiative and work alongside other investors seeking to accelerate global efforts to achieve net zero greenhouse gas emissions by 2050 or sooner.”
• Brookfield Asset Management – Mark Carney, Vice Chair, Head of ESG and Impact Fund Investing, Brookfield Asset Management: “Addressing climate change is a global imperative and one of the greatest commercial opportunities of our time. The world is entering a critical period in which ambition and effectiveness of sustainable investments must be transformed. Building on its base as one of the largest private renewable power businesses in the world, Brookfield is determined to play a leading role in accelerating the transition to net zero by 2050 or sooner. As a global asset manager, we recognize that the commitment, collaboration, and capital of private finance is fundamental to addressing climate change and delivering the goals of the Paris Agreement. That is why we are delighted to join others as a signatory to the Net Zero Asset Managers initiative, which underscores our long-standing commitment to driving the complementary goals of sustainability and value creation across our investments and operations.”
• FullCycle – Ibrahim AlHusseini, Founder and Managing Partner, FullCycle: “Climate change is a race against time—but it’s not a race that anyone can win alone. The capital and the technology we need already exist, but to-date we have lacked a unifying framework to measure climate impact and guide the coordinated strategic prioritization of capital flows. At FullCycle we use the Carbon Return on Investment 20 to assess impact across industries and investment opportunities: we invite others to adopt this, and also to collaborate with us in refining the complete framework around which the industry can align. In the last century, finance was able to lift half the human population out of poverty. In this century, finance can play a defining role in bringing human civilization into harmony with the natural world.”
• Lazard Asset Management – Ashish Bhutani, CEO, Lazard Asset Management: “The climate crisis we face has societal and financial implications. We have joined the Net Zero Asset Managers Initiative to hold ourselves accountable to deliver on our responsibility to protect our client’s portfolios from systemic risks such as climate change. Consistent with our fiduciary duty, we will work towards allocating capital to companies with long-term sustainable business practices to deliver better investment outcomes. In partnership with our clients, we will progress towards net zero emissions.”
• Mirova – Philippe Zaouati, CEO, Mirova: “Generating impact through investment has been at the heart of Mirova’s mission since our inception. Working to reduce the carbon footprint of portfolios and engaging with companies are powerful tools to support a net-zero economy, and at Mirova we have been developing investment solutions to help our clients address these issues for several years now. The Net Zero Asset Managers Alliance shows an alignment among asset managers to prioritize zero-carbon solutions, and we are very optimistic in joining this coalition that portfolio decarbonization can and will accelerate.”
• RockCreek – Afsaneh Beschloss, Founder and CEO, RockCreek: “With decades of experience investing in climate solutions, RockCreek’s global team is excited to sign-on to the Net Zero Asset Managers Initiative. There has never been a more critical moment than now for investors and asset managers to collaborate and signal the shift to net zero by insisting on transparency and bold action. The RockCreek team has been at the forefront of investing with consistent returns in sustainability and climate solutions for several decades, and supports this critical global undertaking.”
• Terra Alpha – Tim Dunn, CEO of Terra Alpha, said: “Decarbonizing the global economy is Terra Alpha’s primary impact focus. Joining the Net Zero Asset Managers initiative is a powerful way to collaboratively support this transition and help build a truly sustainable world.
• VanguardChairman and Chief Executive Officer, Tim Buckley, said, “Climate change represents a long-term, material risk to our investors’ portfolios. As a steward of our clients’ assets, we recognize the crucial role we and others play in driving real progress on climate risk over time. As part of our ongoing efforts to tackle this important matter, we will continue to engage with portfolio companies, industry regulators, and policymakers, and today we add our commitment to the Net Zero Asset Managers initiative. We look forward to helping drive collaborative and constructive dialogue across our industry to establish win-win solutions for long-term shareholder return and the goal of net-zero emissions by 2050.”

South America:

• JGP – André Jakurski, Founding Partner and Executive Director, JGP: “As an Asset Manager of more than 20 years, we believe in the importance of transgenerational thinking and inspirational leadership, therefore JGP is determined to lead by example by playing its part in signing the Net Zero Asset Managers initiative to provide a sustainable and prosperous future of our planet. As stewards of over 5 billion dollars in AUM we aim to adopt increasingly stringent criteria of climate impact in our decision-making process for new investments, which includes helping to support and finance the transition towards a low carbon economy. We will make efforts to ensure that our operations will be carbon net zero by 2040 at the latest.”

Founding Partners:

• AIGCC: Rebecca Mikula-Wright, Executive Director, Asia Investor Group on Climate Change: “It is fantastic to see fresh commitments to the Net Zero Asset Managers Initiative out of Asia as regional investors continue to accelerate their response to climate change risks and position themselves for the enormous opportunities in the clean energy transition. These new commitments from Nissay Asset Management and Maitri Asset Management are a practical demonstration of their commitment to managing climate risks and continuing to thrive in the global net zero economy.”
• CDP: Paul Simpson, Chief Executive Officer of CDP, said: “As a founding partner of the Net Zero Asset Managers initiative, CDP is delighted to see it continue to gather strong momentum and support. For more than 20 years, CDP has empowered the global asset management community with the tools to drive environmental transparency and action. As a sector that plays a critical role in the transition to a net zero carbon economy, CDP is encouraged by the growing number of asset managers committing to de-carbonize their portfolios. We look forward to seeing this translate into science-based emissions reduction targets, investment activity that is aligned with the Paris Agreement and near-term accountability and reporting.”
• Ceres: Mindy Lubber, Ceres CEO and President said: “We are building a global movement towards net zero and it continues to grow by the day. Investors, like companies, understand they need to take real action, too. Not only do they need to call on the companies in their portfolios to act on climate change, but they also need to align their own investments with net zero. This is not just about shifting portfolios. It is about taking advantage of the biggest investment opportunities of our time.”
• IGCC: Emma Herd, Chief Executive Officer, Investor Group on Climate Change: “The acceleration of the asset management industry’s response to climate change is critical to delivering on the aims of the Paris Agreement and protecting the global financial system from systemic physical and transitional risks. The expansion of participation in the Net Zero Assets Managers Initiative sends a further signal to the Australian and New Zealand markets that global capital is swinging behind a net zero emissions and resilient future.”
• IIGCC: Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change: “Over a third of the world’s AUM is now committed to securing a net zero and resilient future through the Net Zero Asset Managers initiative. We need to move the narrative to reflect this, no longer is this a coalition of the willing – this is a coalition of the determined. Ambition is matched by acceleration. The Net Zero Asset Managers’ commitment does not simply look to the future in 2050. Interim targets will be set for 2030, both indicating and driving the pace of transition adopted by the signatory asset managers. With 43 new signatories to the initiative, 73 of the world’s leading asset managers are now committed to meeting significant targets in this vital decade. We would encourage all asset managers to join us in securing a net zero and resilient future.”
• PRI: Fiona Reynolds, CEO, Principles for Responsible Investment: “As we approach COP26, the urgent need to transition to a low-carbon economy, and to have the right framework to finance that transition, is incredibly clear. The finance sector is at a tipping point in its adoption of net-zero, and it’s essential that actors across the investment chain alongside governments continue to take net-zero-related actions, and to be held accountable for those commitments through interim and longer-term targets. Asset managers play a critical role in this transition, both in the mandates they execute from asset owners, and in their own investment focus.”

Further comment

• Edward Mason, Director of Engagement and Impact Reporting, Generation Investment Management “The rapid growth of the Net Zero Asset Managers initiative is breath-taking. Our focus as advisory group members is resolutely on delivery. In time for COP26, the initiative must now focus on ensuring ambitious targets are set for assets to be managed in line with net zero by 2050 or sooner, using the rigorous methodologies required by the initiative.”

11.12.20

• 30 founding investor signatories to Net Zero Asset Managers initiative will work in collaboration with clients to achieve target-based net zero goal by 2050 or sooner
• Other asset managers encouraged to join initiative, to demonstrate sector leadership and commitment to sustainable future

Asset managers representing over $9 trillion of assets under management (AUM) today announced the launch of the Net Zero Asset Managers initiative. This is a leading group of global asset managers that commit 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°C. They also commit to support investing aligned with net zero emissions by 2050 or sooner. Delivery of the commitment also includes prioritising the achievement of real economy emissions reductions within the sectors and companies in which the asset managers invest.

As part of the initiative, asset manager signatories have committed to:

• Work in partnership with asset owner clients on decarbonisation goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management;
• Set an interim target for the proportion of assets to be managed in line with the attainment of net zero emissions by 2050 or sooner; and
• Review their interim target at least every five years, with a view to ratcheting up the proportion of AUM covered until 100% of assets are included.

The commitment in turn recognises “an urgent need to accelerate the transition towards global net zero emissions and for asset managers to play our part to help deliver the goals of the Paris Agreement and ensure a just transition.”

Drawn from across the world, the initial 30 Net Zero Asset Managers signatories are: a.s.r. Asset Management, Anaxis Asset Management, Arisaig Partners, Asset Management One, ATLAS Infrastructure, AXA Investment Managers, BMO Global Asset Management¹, Calvert Research and Management, CCLA Investment Management, Clean Energy Ventures, DWS, FAMA Investimentos, Fidelity International, Generation Investment Management LLP, Gulf International Bank Asset Management, Handelsbanken Fonder AB, IFM Investors, Inherent Group LP, Kempen Capital Management, Legal & General Investment Management, M&G plc, New Forests Pty Ltc, Nordea Asset Management, Robeco, Sarasin & Partners LLP, Schroders, Swedbank Robur, UBS Asset Management, Wellington Management and WHEB.

Further commitments from other leading names in the sector are expected over coming months.