Energy Efficiency, GHG Emissions  -  June 1, 2022

Net Zero Asset Managers Initiative Adds Companies

The Net Zero Asset Managers initiative announced that the number of asset managers committing to net zero by 2050 grows to 273.

There are now 53 asset managers that joined the initiative since November 2021, bringing the total to 273, representing more than USD 61.3 trillion in assets under management.

 The new signatories include T. Rowe Price, Credit Suisse Asset Management, and Frontier Investment Management.  

Less than 18 months since the initiative launched, 83 asset managers have set initial targets with 39% of their assets (USD 16 trillion) now committed to being managed in line with achieving net zero by 2050 or sooner. Most targets are from those who joined the initiative in March and April 2021, with some asset managers also disclosing early or updating their initial targets.

The latest targets mean that collectively USD 16 trillion – out of a possible USD 42 trillion managed by the asset managers who have set targets to date – is now committed to being managed in line with achieving net zero by 2050 or sooner. They are also subject to targets consistent with a fair share of the 50% global emission reduction by 2030 identified as necessary in the IPCC special report on global warming of 1.5°C. This sum represents approximately 39% of those managers’ assets – up from 35% when the first set of targets were published at COP26.  

“Since our first submission in October, we have further intensified our efforts across the whole business to develop an approach which is robust and can be implemented in an effective manner by investment teams, meaning our revised figure now stands at 65% of total assets managed in line with net zero by 2050,” said Marco Morelli, Executive Chairman, AXA Investment Management, in a statement. “Going forward, our aim is to continue to grow the proportion of net zero-aligned AUM as reliable methodologies become available for all asset classes.”