A group of asset owners has indicated that their asset managers should continue to participate in, or join, the Net Zero Asset Managers initiative (NZAM).
NZAM was suspended early last year, and in October the grouping proposed a revised and weakened set of requirements for members.
A consultation on a new Commitment Statement for NZAM ended last week, with a relaunch of the group expected later this month.
In a statement on Friday, more than 40 asset owners said they remained “deeply concerned about the escalating and systemic risks posed by climate change to the global economy, the markets and our portfolios”.
They said NZAM’s updated Commitment Statement “presents an opportunity for asset managers to reaffirm their commitment to supporting investing aligned with the global goal of net-zero emissions”.
“This sends an important and public signal to the asset owner community and the wider market on how they are managing climate-related financial risks and opportunities on behalf of their clients.”
The statement is backed by investors including AP2, AP3, Border to Coast Pensions Partnership, ERAFP and FRR, Strathclyde Pension and the University Pension Plan Ontario.
They said international initiatives like NZAM helped asset managers to manage climate-related risks on their behalf, and that they supported ongoing participation from existing signatories and encouraged those who had not yet joined to consider becoming signatories.
“As owners of capital, we will continue to engage with our asset managers regarding their commitment to the Net Zero Asset Managers initiative,” the statement read.
According to the asset owners, NZAM is aligned with “key principles that help guide best practice investment strategies,” such as “consistency through engagement, product delivery, and policy advocacy”.
Writing on social media about the statement, Laura Hillis, managing director, responsible investment at Church of England Pensions Board, highlighted that NZAM could also help deliver consistency and standardisation in reporting, commitments and data “so we can reasonably evaluate and compare asset manager approaches”.
US investment houses BlackRock, JPMorgan Asset Management, and Vanguard are some of the asset managers that have left NZAM.
Some European pension funds have parted ways with asset managers that have left NZAM and other private finance climate groups, while others, including those signing the statement about NZAM, continue to maintain relations.
