State Street, Russell Investments and US ESG specialist Trillium Asset Management are among 14 new investors signing up for the Net Zero Asset Managers initiative, pledging to hit net-zero emissions by 2050.
The global Net Zero Asset Managers project has now signed 87 investors managing $37 trillion (almost 40 per cent of the total assets under management worldwide).
The asset managers have committed to a net zero by 2050 goal, as well as a 50 per cent reduction in emissions by 2030. Signatories have also pledged to report their progress against the Task Force for Climate-related Financial Disclosures (TCFD) recommendations.
With State Street joining, the initiative now has lined up the three largest asset managers in the world, after BlackRock and Vanguard committed in March.
The latest round of signatories includes Alquity Investment Management, BankInvest, Colony Capital, Coutts Asset Management, Ecofin, Insight Investment, Quinbrook Infrastructure Partners, Ridgewood Infrastructure, Russell Investments, Sage Advisory, State Street Global Advisors, Trillium Asset Management, Valo Ventures, and Vert Asset Management.
Cyrus Taraporevala, president and chief executive, State Street Global Advisors commented: “We are especially keen to leverage our position as one of the world’s largest asset managers to raise awareness of the systemic risks associated with climate change, and to help all stakeholders navigate the difficult choices we face as we effectively manage the transition risks.
“The goal of net-zero-carbon emissions by 2050 is consistent with our commitment to drive long-term value on behalf of our clients.”
US climate envoy John Kerry will acknowledge the initiative at an event, in the lead-up to the Leaders Summit on Climate on Thursday and Friday.
“The largest financial players in the world recognise energy transition represents a vast commercial opportunity as well as a planetary imperative,” Mr Kerry said.
“As countries around the world move to decarbonise, the large sums these institutions are dedicating to climate finance also reflect a growing understanding of how critical a low-carbon global economy is to their business models.
“Ultimately, their commitment of capital and assets, as well as adherence to high standards and reporting, will accelerate the transition to this new economy, create a massive number of new jobs, and increase our collective ability to tackle the climate crisis.”
The Net Zero Asset Managers initiative is being managed by six investor networks worldwide, including the Australian and New Zealand centred Investor Group on Climate Change (IGCC) and the UN-aligned Principles for Responsible Investment (PRI).
It also has an advisory group, with representatives from signatory managers – one of them is IFM Investors executive director of responsible investment, Chris Newton.
IGCC CEO Emma Herd commented: “The continued growth of the Net Zero Asset Managers initiative is a reflection of the rapid shift occurring in capital markets towards the net zero emissions transition.
“In particular, we welcome Quinbrook Infrastructure Partners as one of the latest signatories to the initiative and look forward to more commitments emerging from Australia and New Zealand in coming months.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].