- Less than two years since the initiative launched, the latest disclosures take the total number of asset managers that have set initial targets to 169.
- The initiative continues to grow, with 21 managers joining the initiative since May 2022, bringing the total to 291, representing more than USD 66 trillion in AUM.
- Asian signatories include Asset Management One, Brawn Capital, Maitri Asset Management, Mitsubishi UFJ Asset Management, Nikko Asset Management, Nissay Asset Management, Sumitomo Mitsui Trust Asset Management, and Tokio Marine Asset Management
86 asset managers – the largest group to date – have disclosed their initial targets for the proportion of assets managed in line with achieving net zero by 2050 or sooner. All targets are now available on the Net Zero Asset Managers initiative (NZAM) website and follow May’s target disclosure report.
The latest targets mean that, collectively, approximately USD 21.8 trillion – out of a possible USD 55.3 trillion managed by the asset managers who have set targets to date – is now committed to be managed in line with achieving net zero by 2050 or sooner.
A starting point only
The initial targets are only a starting point and represent what asset managers can feasibly commit to today.
Collectively, signatories have now committed on average 39 per cent of assets to net zero by 2050, with all NZAM signatories committing to ratchet up their assets committed to net zero with a view to reaching 100 per cent. Achieving this, however, is dependent on numerous factors including the mandates agreed with clients, clients’ and managers’ regulatory environments, supportive policy environments and the development of target setting methodologies for all asset classes.
For the latter, most targets set to date cover listed equity and fixed income due to available target setting methodologies for both asset classes, whereas fewer cover other asset classes, such as private equity and infrastructure, due to the nascency of supporting target setting methodologies. NZAM’s intention is that as methodologies develop to cover more asset classes, as illustrated by the ongoing development and broadening of the Net Zero Investment Framework (NZIF), additional asset classes will be incorporated into targets.
Approaches to target setting
Across the 169 initial targets submitted to date, 87 use the Paris Aligned Investment Initiative Net Zero Investment Framework (NZIF), 39 use the Science Based Targets initiative for Financial Institutions (SBTi), 9 use the UN-convened Net Zero Asset Owner Alliance Target Setting Protocol (TSP), 23 use a combination and 11 use own/other methodology.
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Rebecca Mikula-Wright, CEO, Asia Investor Group on Climate Change (AIGCC) said: “As more investors join these initiatives, set their initial targets, and get access to the tools and networks that support their work, they get themselves on a faster trajectory to managing down the risks of climate change, and positioning themselves to invest wisely in the transition.”
“Global investor collaboration has been critical to progress towards net zero, and a holistic approach of engaging with policy makers and business is essential for the clean energy transition to accelerate and to scale the investment required by 2030, only 85 months away.”
Read the full media release
Read the November 2022 initial target disclosure
View the signatories