About

What is the Net Zero Asset Managers (NZAM) initiative?

Net Zero Asset Managers (NZAM) is a voluntary initiative for asset managers committed, in their individual contexts, to supporting investing in line with the global goal of net zero greenhouse gas emissions. It provides a platform for voluntary commitments and public disclosures of individual net zero targets and implementation strategies. Through these disclosures, signatories demonstrate how they are addressing climate-related financial risks and capturing the opportunities presented by the transition to a low-carbon economy for their clients and beneficiaries.    

What are the key benefits of being an NZAM signatory?

1. Global & science-based 

NZAM is a global initiative with a broad range of asset manager signatories located across multiple regions. It provides a globally recognised platform for asset managers to make voluntary commitments and public disclosures of their individual net zero targets and implementation strategies. NZAM endorses three leading, science-based target setting methodologies – the Net Zero Investment Framework (NZIF), the Science Based Targets initiative for Financial Institutions (SBTi) Near-Term Criteria and Net-Zero Standard, and the Target–Setting Protocol (TSP).

2. Client and stakeholder alignment 

Through these disclosures, asset managers can showcase how they are addressing climate-related financial risks and capturing the opportunities presented by the transition to a low-carbon economy for their clients and beneficiaries. This also enables asset owners with net zero commitments to identify manager alignment with their expectations and needs. 

3. Transparency and accountability 

NZAM signatories commit to disclosure on how they are managing climate–related financial risks and opportunities through their implementation of the NZAM commitment. Signatories publicly report their plans, actions taken, and progress made. Through these disclosures, the NZAM platform enables the ambition, strategy, and progress of different managers to be assessed and compared by clients and other relevant stakeholders.

4. Capacity building 

NZAM supports signatories through a range of capacity‑building resources, including webinars, workshops, and technical guidance developed by the Network Partners. These learning opportunities help asset managers build internal expertise, stay informed about evolving climate methodologies, and strengthen the quality of their net zero target‑setting and implementation practices.

Can my firm become a signatory?

To become an NZAM signatory, an asset manager must be a member or signatory of at least one of the initiative’s Network Partners (AIGCC, Ceres, CDP, IGCC, IIGCC, or PRI). Asset managers are encouraged to make their organisational NZAM commitment at the parent/group level. If a subsidiary wishes to become a signatory, it must be a legally registered office or business, such as a regional subsidiary or asset management firm within a larger business group.  

To start your NZAM journey, reach out to info@netzeroassetmanagers.org.

Commitment

What is the scope of commitment?

The NZAM Commitment Statement contains seven actions to support the entity-level commitment. 

Signatories commit to implement these actions ‘where consistent with [their] fiduciary duties and, where applicable, client mandates, fund investment objectives and other legal obligations.’  

As such, the scope of implementation across the seven commitments will vary from signatory to signatory. Signatories are encouraged to adopt an ‘implement or explain’ approach and communicate how they are implementing their NZAM commitments as part of their disclosures on the NZAM website. 

How does NZAM’s updated Commitment Statement differ from its first one?

The updated NZAM Commitment Statement remains anchored in the objectives of the Paris Agreement and the global goal of net zero emissions. It streamlines commitment actions from ten to seven to more clearly set out the material levers available to asset managers, while also including greater clarity over dependencies and limitations. 

NZAM’s first Commitment Statement can be found here. 

Disclosures

What kind of target-setting methodologies do NZAM signatories use?

NZAM recommends that signatories choose from three endorsed target-setting methodologies: 

These endorsed methodologies specify the recommended time horizons of near- and long-term targets, contain guidance for a broad range of asset classes, and provide guidance on topics such as greenhouse gas accounting across emission scopes and use of carbon removals or carbon credits to fulfil and track progress against targets.  

Signatories should choose one or a combination of the above methodologies to ensure approaches to setting climate targets are robust and consistent with the global goal of net zero greenhouse gas emissions.  

If a signatory wishes to use an alternative methodology, they should explain the rationale in their target submission and disclosure, including how their alternative methodology is sufficiently rigorous and consistent with the target setting commitment. 

When and how often should signatories update their disclosures?

The recommended timeframes for signatories are as follows: 

  • Near-term climate targets: Within 12 months of becoming a signatory, review at least every 5 years. 
  • Implementation Plan: Within 12 months of public disclosure of targets. 
  • Annual reporting: Within 12 months following public disclosure of targets, then annually.

How can my firm update its disclosure?

To update information on your disclosure page or initiate a target review, please contact your Network Partner representative.