Almost half of all global assets under management are now geared towards net-zero goals, according to a group of fund managers

Students protest in Auckland's Aotea Square over climate change on March 15, 2019 in Auckland, New Zealand.
Students protest in Auckland’s Aotea Square over climate change on March 15, 2019 in Auckland, New Zealand.

  • $43 trillion worth of assets under management globally are now linked to net zero emissions goals via the Net Zero Asset Managers Initiative.
  • 41 firms have joined the initiative, raising the amount of funds managed with an ESG focus.
  • Asset managers are aiming to bring client portfolios to net zero by 2050 under the initiative.
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Almost half of all global assets under management are now geared towards net zero goals after 41 more firms joined the Net Zero Asset Managers initiative – a group of fund managers that aim to lower the carbon footprint of their clients’ portfolios and reach net zero by 2050.

The group said on Tuesday it now had 128 signatories that manage $43 trillion of the $100 trillion strong asset management industry, saying that this moved the sector closer to a “net zero tipping point”.

“This marks a fundamental tipping point across the investment sector and a significant boost in efforts to tackle climate change and decarbonize the global economy. There’s a lot more to achieve, but the sector is increasingly on a path to a net zero future.” Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change – one of the founding members of the Net Zero Asset Managers initiative – said.

The initiative, which was founded in December 2020 and is recognized by the United Nations Framework Convention on Climate Change Race to Zero campaign, sees asset management firms committed to supporting emissions reductions in the real economy, developing investment products that are geared towards net zero and encouraging clients to invest in a climate friendly way.

Signatories report their progress annually according to guidelines set by the Task Force for Climate-related Financial Disclosures.

In May, the International Energy Agency published a special report that concluded that in order to achieve net zero by 2050, there should be no new investments in fossil-fuel supply projects as well as a series of other limitations, including on the funding for coal-fired power plants.

Amundi and HSBC Asset Management are among those that joined competitors including BlackRock, Vanguard, UBS, Fidelity, State Street and Allianz. Other major investment banks such as JPMorgan, Goldman Sachs and BNY Mellon have however not signed up to the net-zero plans so far.

Earlier this year, HSBC narrowly avoided a shareholder revolt over its continued fossil fuel investments. It later committed to end funding for the coal industry.

“As the world moves to a net zero carbon future, we are committed to playing our part in addressing climate change, both as a business and as stewards of our clients’ assets.” Nicolas Moreau, the CEO of its asset management unit said about the move to now join the net zero initiative.

Read the original article on Business Insider

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