SA’s largest asset manager Ninety One is sticking with the Net Zero Asset Managers (NZAM) initiative — a global climate alliance meant to support the goal of net zero greenhouse gas emissions by 2050 — despite a recent major defection by the world’s largest money manager, BlackRock.
The US asset management behemoth BlackRock this week ditched the initiative, casting doubt on its future, and the influential industry’s commitment to push investee companies to cut emissions.
The decision by BlackRock, which has $11.5-trillion assets under management, saw NZAM on Tuesday suspend its activities.
“Recent developments in the US and different regulatory and client expectations in investors’ respective jurisdictions have led to NZAM launching a review of the initiative to ensure NZAM remains fit for purpose in the new global context.
“Signatories will be consulted throughout the review process and informed of any updates in a timely and transparent fashion,” the outfit said in a statement.
“As the initiative undergoes this review, it is suspending activities to track signatory implementation and reporting. NZAM will also remove the commitment statement and list of NZAM signatories from its website, as well as their targets and related case studies, pending the outcome of the review.”
NZAM was launched in 2020 with the objective of marshalling the world’s largest asset managers to support global efforts to limit warming to 1.5°C, and to supporting investing aligned with net zero emissions by 2050 or sooner.
The voluntary organisation quickly grew to more than 300 members with a combined $57-trillion in assets under management.
NZAM in 2021 launched the Net Zero Investment Framework, used by the majority of its signatories when setting their initial targets in line with the initiative’s commitment statement.
Ninety One, with about R3-trillion in assets under management and Old Mutual Investment Group (OMIG) are signatories to NZAM.
Ninety One told Business Day it still believes in the objectives of NZAM.
Annika Brouwer, sustainability specialist at Ninety One, said the Anglo-South group remains committed to the principles and objectives that NZAM represents.
“We recognise the role the initiative plays in helping investors mitigate the financial risks of climate change while unlocking the opportunities associated with the transition to a net zero economy. Ninety One joined NZAM because we believe that the asset management industry can help drive sustainable progress,” said Brouwer.
“Our decision was grounded in our commitment to responsible investing, aligning our fiduciary responsibilities with the long-term financial objectives of our clients. NZAM’s mission resonates with our belief in supporting a just and inclusive transition, ensuring that both developed and emerging markets can benefit equitably from the transition to net zero.
“We appreciate NZAM’s dedication to evolving in response to the changing global landscape and welcome the transparency and inclusivity of the review process. We look forward to engaging in this dialogue to ensure NZAM continues to be an effective platform for investors worldwide.”
US banking giants JPMorgan, Goldman Sachs, Bank of America, Citigroup, Wells Fargo and Morgan Stanley have departed the UN-backed Net-Zero Banking Alliance (NZBA) — whose members have committed to align their lending, investment and capital markets activities with global efforts to tackle climate change.
US financial services groups, whose global reach is unparalleled, have come under pressure from right-wing US politicians who have called them out for supporting the “woke agenda”.
The withdrawals by US firms from NZAM and NZAB came shortly after Donald Trump was elected as president-elect of the country.
Trump, who takes office next week, has previously said climate change is a hoax.
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