Dive Brief:
- The United Nations-backed Net Zero Asset Managers initiative announced Wednesday it will relaunch in January 2026, with scaled back requirements for signatories, including the removal of certain 2050 goals.
- The climate industry group said in the announcement that it was dropping its requirement for signatories to target 2050 “to reflect diverse jurisdictional realities and accommodate signatories from a wider range of markets.”
- NZAM suspended all of its operations this January, shortly after BlackRock — the world’s largest asset manager — departed from the group. BlackRock’s exit followed a wave of departures made by U.S. banks from a similar UN-aligned banking industry group, the Net-Zero Banking Alliance, prior to the inauguration of President Donald Trump.
Dive Insight:
In January, NZAM attributed the prior suspension of operations to “recent developments in the U.S. and different regulatory and client expectations,” and said it would review its program in the interim. The group’s Oct. 29 announcement said it had completed that review, which included six months of stakeholder outreach.
NZAM said in a release that the changed requirements reflect an “investment landscape [that] has evolved significantly” since the initiative was launched in 2020. The group also noted that asset managers and owners had said they wanted NZAM to “retain ambition, remain globally inclusive, and ensure the Commitment Statement continues to be practical within the evolving landscape.”
“With the aim of delivering better investment outcomes, signatories recognize 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,” the release said. “In this context, signatories commit to support investing aligned with the global goal of net zero greenhouse gas emissions.”
NZAM said signatories would continue to set individual targets and stewardship practices and report annually on their progress under the relaunched initiative. Signatories were given the revised commitment statement Wednesday, according to the release. The group said it will relist its signatories when it relaunches — after web pages listing members, targets and case studies were removed Jan. 13 — and that it plans to resume its target and implementation support activities for asset managers.
State Street announced Thursday that only its European and United Kingdom entities — State Street Global Advisors Europe Limited and State Street Global Advisors Limited (UK) — will remain signatories to NZAM when the group relaunches. The asset manager’s U.S. arm was a member of the group prior to the operational suspension.
“This redefinition of our NZAM signatory status will have no impact on our commitment to delivering sustainable investing solutions to our clients who hire us for our sustainable investment and reporting expertise and capabilities to help them achieve their net-zero goals,” State Street said in a statement.
By retaining a signatory-based structure and devising plans to relaunch, NZAM has differentiated itself from the Net Zero Banking Alliance. After waves of exits from U.S. and Canada-based banks in January — centered on Trump’s inauguration — expanded over the summer, NZBA announced it would cease operations and move to a guidance-based model earlier this month .
