The Net Zero Asset Managers (NZAM) initiative, a significant coalition of investment managers committed to achieving net zero greenhouse gas emissions, will resume operations after pausing in early 2025. This pause was necessary to adapt to a rapidly changing political and regulatory landscape, which led to the withdrawal of some of its largest members.
As NZAM announces its return, it has introduced several changes to its commitment requirements for signatories, notably removing the explicit reference to investing in line with the goal of reaching net zero by 2050. NZAM was launched in December 2020 with 30 asset managers representing approximately $9 trillion in assets under management (AUM). By early 2025, the initiative had grown to include more than 325 signatories, managing over $57 trillion in AUM. These signatories agreed to commitments, such as working with clients on decarbonisation goals, setting interim targets for assets managed in line with net zero by 2050, tracking portfolio emissions, and prioritising emissions reductions in invested sectors.
Recently, financial services participants in climate-focused groups like NZAM and the Net-Zero Banking Alliance (NZBA) have faced increasing pressure from a vocal anti-ESG movement led by Republican politicians in the United States. This pressure intensified following Donald Trump’s election as President, with accusations that participation in these initiatives amounted to “boycotting energy companies” or engaging in anti-competitive behaviours. The NZBA recently announced it would cease operations after several prominent banks departed.
Following heightened scrutiny, BlackRock announced its exit from NZAM in January 2025, citing confusion regarding its practices and legal inquiries from public officials. Shortly thereafter, NZAM paused its primary activities, removed its commitment statement and list of signatories from its website, and initiated a review of the initiative in light of developments in the U.S. and varying regulatory expectations.
In its latest update, NZAM has shared a revised Commitment Statement with its signatories, removing references to 2050 to reflect diverse jurisdictional realities and accommodate signatories from a broader range of markets. Signatories will continue to set individual targets, implement their own stewardship strategies, and report annually on their progress.
NZAM emphasised the significant risks and opportunities resulting from climate change, with transition-related opportunities potentially reaching $60 trillion by 2050, while companies could face nearly $25 trillion in financial impacts from climate-related hazards. In its statement, NZAM said: “NZAM signatories recognise their fiduciary duties to consider how financial risks and opportunities presented by climate change may impact investment outcomes… Being a signatory to NZAM helps asset managers demonstrate how they are positioning for and seizing these opportunities, while managing climate-related financial risks on behalf of their clients.”
NZAM plans to resume its target and implementation support activities and re-list its signatories on its website in January 2026.
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