- 43 asset managers share first interim targets for the proportion of assets managed in line with achieving net zero by 2050, and set shorter term targets for reducing emissions within their investments
- Signatories disclose that 35% of their total assets under management, totalling USD 4.2 trillion out of a possible USD 11.9 trillion, is being managed in line with achieving net zero by 2050
- A record 92 new asset managers representing USD 10.8 trillion in assets join initiative, bringing the total to 220 investors managing USD 57.4 trillion
- Network partners managing the initiative set out expectations on fossil fuel investment, asking signatories to adopt robust and science-based policies aligned with a 1.5°C scenario
43 investors have disclosed their first interim targets for the proportion of assets managed in line with achieving net zero by 2050, according to a new progress report released today. The asset managers have committed USD 4.2 trillion out of a possible USD 11.9 trillion, meaning that 35% of their total assets under management is in line with net zero.
As signatories to the initiative, asset managers also commit to set interim targets consistent with a fair share of the 50% 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% are included. If this initial target were reflected across all current signatories, more than USD 20 trillion managed would be in line with net zero and subject to 2030 targets by the end of 2022.
The Net Zero Asset Managers initiative Progress Report comes as COP26 begins and at a critical time for increasing investor action on the climate crisis. In addition, a record 92 asset managers representing USD 10.8 trillion in assets are joining the initiative today, bringing the total to 220 investors managing USD 57.4 trillion. These latest numbers indicate that investors representing nearly 60 percent of the world’s total managed assets are now committed toward achieving the goal of net zero emissions by 2050 or sooner.
New signatories include JP Morgan Asset Management, Metrics, Mitsubishi UFJ Trust and Banking, Nikko Asset Management, Nomura Asset Management, Rockefeller Asset Management and Vancity, significantly boosting the representation of Asian and US-based asset managers within the initiative.
Rebecca Mikula-Wright, CEO, the Asia Investor Group on Climate Change (AIGCC) and the Investor Group on Climate Change (IGCC) said: “We welcome the asset managers who have stepped up and committed to reaching net zero emissions, helping the world address the climate crisis. The collaboration of global asset managers is a critical contribution as the world transitions to a decarbonised economy. We are particularly encouraged by the increasing number of new Asian signatories and look forward to further our net zero implementation work in the region.”
Iwao Nagashima, President and CEO, Mitsubishi UFJ Trust and Banking said: “We believe that addressing climate change is essential to achieving a sustainable society over the medium- to long-term and contributing to the expansion of customer assets through increasing the value of our investees. We, together with the asset management companies in our group, will promote efforts to mitigate climate change by making maximum use of approaches that we can take as investors, such as engagement and voting rights. Through participation in the Net Zero Asset Managers initiative, we will strengthen collaboration with a wide range of stakeholders more than ever before, contribute to a smooth transition to a decarbonized society, and fulfil our fiduciary responsibility.”
Hiroki Tsujimura, Global Head of Investment and CIO, Nikko Asset Management Co., Ltd. said: “Sustainable investment is at the core of our business and we believe it is inherent to long-term value creation. We are excited to make a commitment to achieve global net zero emissions by 2050 and honored to be part of this growing group of global asset managers. While we acknowledge there are many hurdles and challenges, by collaborating with our clients, investee companies, and other initiative members we can accelerate progress to meet this ambitious goal.”
Hiroyasu Koike, President and CEO, Nomura Asset Management. said: “Nomura Asset Management is proud to be part of the Net Zero Asset Managers initiative and we firmly believe that asset managers play a key role in changing the world and achieving a decarbonized and climate-resilient society. As one of the largest asset managers in APAC, we are advantageously positioned to create a positive impact through effective stewardship activities and leveraging our profound climate-related expertise in collaboration with stakeholders. With our interim target and goal as guides, I am confident we will be successful in accelerating this important transition and achieving global net zero emissions by 2050, if not sooner.”
Scott Reinhart, Founder and Managing Director, Brawn Capital said: “Brawn Capital is focused on accelerating the switch to renewables in Asia and is proud to join the Net Zero Asset Managers initiative. Climate change is the most significant risk and the largest opportunity investors will see in our lifetimes.”
Today, the network partners published 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 (IPCC)’s 1.5°C scenario.
The Net Zero Asset Managers initiative is managed globally by six founding partner investor networks: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investor Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI).