In 2020, the world was grappling with the onset of the COVID-19 pandemic, a global crisis that exposed systemic vulnerabilities and accelerated calls for resilience across industries. At the same time, the climate emergency was intensifying. Wildfires, floods, and record-breaking temperatures underscored the urgent need for addressing the financial implications of the climate crisis. It was in this context that the Net Zero Asset Managers (NZAM) initiative was launched: a timely effort to create a platform for individual asset managers to publicly commit, in their own contexts, to aligning their portfolios with the goal of net zero emissions.
Five years on, the investment landscape has evolved significantly – with NZAM and its signatories having contributed to that evolution. Asset managers have deepened their climate capabilities, regulatory frameworks have become more sophisticated, and clients are demanding greater transparency and accountability. Against this backdrop, NZAM undertook a comprehensive review to ensure the initiative remains relevant, practical, and globally inclusive.
Practical within the evolving landscape
That review is now complete. In under six months, hundreds of stakeholders were engaged, including signatories and non-signatory asset managers as well as asset owners. The feedback was clear: retain ambition, remain globally inclusive, and ensure the Commitment Statement continues to be practical within the evolving landscape. The updated text reflects this.
With the aim of delivering better investment outcomes, signatories recognise the importance of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and of continuing to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels, in line with the stated goals of the Paris Agreement. In this context, signatories commit to support investing aligned with the global goal of net zero greenhouse gas emissions as outlined in the Commitment Statement, which was shared with them earlier today.
There is clearer foregrounding of what has always been the case: that the extent to which signatories can implement the actions set out in the Commitment Statement depends on a wide range of factors including clients, policies and regulations adopted by governments and other actors. References to 2050 have been removed to reflect diverse jurisdictional realities and accommodate signatories from a wider range of markets. Signatories will continue to set individual targets, implement their own stewardship strategies, and report annually on their progress.
Climate change presents financial risks and opportunities
NZAM signatories recognise their fiduciary duties to consider how financial risks and opportunities presented by climate change may impact investment outcomes.
The transition to a net zero economy could be one of the defining investment opportunities of our time. Transition-related opportunities could grow from $2 trillion today to up to $60 trillion by 2050. Over the same period, the world’s largest companies could accrue nearly $25 trillion in cumulative financial impacts due to changing climate hazard exposures.
Being a signatory to NZAM helps asset managers demonstrate how they are positioning for and seizing these opportunities, while managing climate-related financial risks on behalf of their clients.
A new chapter
The updated Commitment Statement has now been shared with NZAM signatories. While the initiative provides the structure, it is each individual asset manager’s commitment. Signatories are encouraged to reach out to their relevant Network Partner if they would like to discuss the changes further. We will resume target and implementation support activities in January 2026, alongside the re-listing of signatories on our website. NZAM is ready for its next chapter.
Adrien Couret, CEO of Aéma Groupe:
“As a mutual insurance company and Asset Owner, we have observed for over 30 years the rising frequency and severity of claims linked to climate-related disasters. These events directly mirror the toll these disasters take on the real economy. At Aéma Groupe, the daily interaction between our Asset Owner and Asset Manager functions is constant. This essential and productive dialogue enables us to develop a strategic and holistic vision that transcends purely technical issues. We firmly believe in the value of initiatives that foster strong links and create synergies between AOs and AMs, which is precisely why we support the NZAM initiative.”
Faith Ward, Chief Responsible Investment Officer for Brunel Pension Partnership:
“NZAM is a readily available, credible mechanism for asset managers to demonstrate client alignment with climate objectives and net zero commitments. Ensuring this alignment sits at the heart of Brunel’s philosophy and underpins how it evaluates asset managers and strategic partners. Industry coalitions like NZAM are critical to delivering efficient, effective climate action at scale, and we strongly support frameworks that raise the standard for consistency, transparency and real-world implementation.”
Laura Hillis, Managing Director, Responsible Investment at the Church of England Pensions Board:
“Climate change remains as much in focus for us as ever. If anything, the increasing physical impacts and updated scientific assessments we’re seeing in 2025 should raise more alarm bells across our sector. That’s why we are looking to our asset managers and the wider investment sector to play a constructive and proactive role in addressing climate risk and realising transition-related investment opportunities. We see participation in the Net Zero Asset Managers initiative as key to this – it provides industry best practice tools and frameworks, and helps lift standards across the whole investment industry, which leads to a better long-term outcome for the economy than everyone ‘going it alone’.”
Brad Lander, New York City Comptroller:
“NZAM is a critical organization for the future of the climate finance ecosystem and our global effort to address climate change. As we experience the increasing harms of climate change on people and the economy globally, we need asset managers to play their part to mitigate climate change and protect long-term investment returns. We look forward to partnering with NZAM and its members to mitigate risks, seize opportunities, and secure strong economic outcomes for the future.”