On the go: Signatories of the Net Zero Asset Managers initiative have 35 per cent of their total assets managed in line with achieving net zero by 2050, according to an interim report.
Data published by the initiative on Monday showed that 43 investors have disclosed their first interim targets for the proportion of assets managed in line with achieving net zero by 2050, with $4.2tn (£3tn) in assets out of a possible $11.9tn being invested according to this target.
The initiative, launched in in December 2020 with the goal of galvanising the asset management industry to commit to a goal of net-zero emissions, also welcomed 92 new asset managers representing $10.8tn in assets, bringing the total to 220 investors managing £57.4tn.
New signatories include JPMorgan Asset Management, Metrics, Mitsubishi UFJ Trust and Banking, Nikko Asset Management, Nomura Asset Management, Rockefeller Asset Management and Vancity, “significantly boosting the representation of Asia and US-based asset managers within the initiative”, it stated.
The latest figures indicate that investors representing nearly 60 per cent of the world’s total managed assets are now committed towards achieving the goal of net-zero emissions by 2050 or sooner, the initiative said.
As signatories to the initiative, asset managers also commit to set interim targets consistent with a fair share of the 50 per cent global reduction in greenhouse gas emissions by 2030, with 15 setting shorter-term targets for 2025.
Investors must disclose their initial interim target within a year of joining the initiative and review on a regular basis with a view to increasing the proportion of assets until 100 per cent are included.
If this initial target was reflected across all current signatories, more than $20tn managed would be in line with net zero and subject to 2030 targets by the end of 2022, it added.
The Net Zero Asset Managers initiative is managed globally by six founding partner investor networks: Asia Investor Group on Climate Change, CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change, and Principles for Responsible Investment.
The network partners also published on Monday a set of expectations for investors in relation to fossil fuel investment, asking that signatories “adopt robust and science-based policies which are aligned with the Intergovernmental Panel on Climate Change 1.5C scenario”.
Fiona Reynolds, chief executive of the PRI, noted that these new targets are “a welcome step forward in the mission to reach net zero”.
She said: “Of particular note should be firms’ commitment to net-zero plans by 2025 or 2030. We know it is vital for investors to set near-term targets, ahead of 2050, in order to have a realistic chance of making the shift to net zero in time to keep global temperature rises below 1.5C of warming.
“We now need to see pledges go deeper and further — with a higher proportion of assets aligned with net zero and further meaningful collective action on the topic to ensure the industry is on track for 2050.”
