ShareAction response to Net Zero Asset Manager initiative suspending activities
The market is reacting in a negative way and sees the move as a backward step.
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Some of the Net Zero organisations that where set up around COP26 in Glasgow experienced volatile membership developments lately. The Net Zero Banking Alliance lost a number of large U.S. banks and recently also the first Canadian bank as members.
The Net Zero Asset Owner Alliance is continuing with regular reports and provides insights on the progress towards decarbonisation. The Net Zero Asset Manager initiative (NZAMi) did not manage to keep the information on their platform as consistent, comprehensive and updated to represent a good guide for the targets and activities asset managers engage in when they manage decarbonisation strategies.
The market reacted very surprised and a number of organisations commented.
Reacting to the news that the Net Zero Asset Managers initiative is suspending its activities, Lewis Johnston, Director of Policy at ShareAction, said:
“As deadly wildfires rage on in Los Angeles, the threat of climate change and the extreme weather it can bring has never been more clear. Climate risk is financial risk, and any approach to responsible investment must address the ongoing climate crisis."
“Collaboration is critical for addressing this global challenge, and whilst voluntary initiatives have limitations, they can play an important role in sharing best practice and encouraging commitments. The announcement that NZAMi is suspending operations is a backwards step.”
“Alongside this we need regulators to set ambitious policies to raise standards and ensure that the financial sector is playing its part in driving the transition to net zero economies that the world needs.”
It will be interesting to see for asset owners that are still committed to reduce carbon emissions in their portfolios and who want to contribute to a phasing-out of fossil fuels which asset managers return in some form individually or as a group to partner with asset owners.