The Net Zero Asset Managers initiative has formally relaunched, although the move has revealed that large asset managers have since left the already floundering organization.
NZAM relaunched with a public statement from a group of more than 50 asset owners representing over $3.7 trillion in assets, including Scottish Widows, Local Government Pension Schemes, Railpen and Smart Pension.
The organisation also called on asset managers to participate in NZAM, noting the initiative is aligned “with key principles that help guide best practice investment strategies”.
However, large asset managers, including Franklin Templeton, HSBC Asset Management and Invesco, are no longer listed as members.
On its reasoning for leaving NZAM, a statement from Invesco provided to Corporate Adviser says: “We continue to believe our clients’ interests are best served through our existing investor-led, client centric approach, and we elected to step away from NZAM after careful consideration. We remain committed to helping clients who wish to align their assets with sustainability objectives.”
The NZAM had suspended its operations pending review in January 2025, days after BlackRock, the largest asset manager in the world with more than $14 trillion in AUM as of December last year, withdrew from the organisation.
The suspension did not entirely stop the exodus however, as State Street Investment Management, with $5.7 trillion of AUM, went on to withdraw its US-based operations from NZAM in October. State Street confirmed to Corporate Advisor that its European operations remain part of NZAM.
NZAM is a voluntary initiative for asset managers committed to supporting investing in line with the global goal of net zero greenhouse gas emissions.
Asset managers that remain signatories to NZAM include Aberdeen Investments, Amundi, Impax AM, Sarasin, and Sumitomo Mitsui Trust Asset Management.
Ian Simm, CEO of Impax, says: “The updated [NZAM] Commitment Statement reflects our approach: set clear and transparent targets and deliver these through targeted investments, robust governance, and engagement with policy makers on the optimal approach to realising the goals of the Paris agreement.”
NZAM has updated its commitment statement following the relaunch, in a way it claims reflects feedback from signatories and stakeholders during a six-month strategic review.
The revised approach has pivoted from prescriptive targets to providing a platform that asset managers can use to disclose their individual net zero commitments and independent approaches.
Tara Irwin, senior ESG analyst, Hargreaves Lansdown, says: “The signalling value of the NZAM membership has changed. It’s no longer a clear indicator of climate best practice and now functions more as a general statement of intent and vehicle for transparency.
“For investors, the implication is that greater emphasis must be placed on direct analysis of firm-level targets, strategy-level alignment, stewardship outcomes, and the transparency of reporting, rather than relying on NZAM signatory status as the sole indicator of climate credibility.”
A Hargreaves Lansdown survey of 50,000 clients conducted showed that 94 per cent of respondents classed climate change as important, with a third describing it as extremely important.
