LONDON (UK) – As many as 30 asset managers with more than $9 trillion under management have joined hands and launched the Net Zero Asset Managers Initiative on Friday in a bid to help clients ensure that their portfolios remain carbon-neutral by 2050.
The group, which also comprises Schroders and UBS Asset Management, said it would give priority to securing real reductions in emissions at the firms in which they make investments and work with clients to achieve the carbon-free goals.
The group also vowed to set interim goals for the proportion of assets managed in line with Paris climate agreement, which aims to curb global warming to 1.5 degrees Celsius above pre-industrial levels by 2050.
“We cannot solve big problems such as climate change and the rapid decline of biodiversity on our own. But what we can do is set a clear example for the broader industry, work together and encourage other financial institutions such as asset managers to follow suit,” said Robeco Chief Executive Gilbert Van Hassel.
The interim goals would be subjected to a review every five years and would be gradually ratcheted up until all assets managed by the group are in line with the net-zero goal, said the group.
“The real test will be how quickly signatories translate ambition into action by escalating their engagement with companies,” said Peter Uhlenbruch, who heads investor standards at ShareAction, which guns for responsible investment.
The initiative has been launched ahead of the fifth anniversary of the Paris Agreement and as policymakers look forward to the next round of climate discussions slated to take place in Scotland in 2021.
“The Net Zero Asset Managers initiative represents a significant moment on the road to addressing the climate crisis,” said David Blood, senior partner at Generation Investment Management.
