The Net Zero Asset Managers Initiative (NZAMI) has, in the first round of early disclosures for COP26, reported that initial AUM in line with the net-zero emission target is 35% amongst 43 reporting signatories. Signatories will increase AUM until all assets are net-zero, with the end date for the goal being 2050.
Ninety-three additional signatories were announced on 1 November 2021.
In general, smaller asset managers and managers specialising in sustainable investment included higher percentages of AUM in initial disclosures. The percentage of AUM committed also varied by business model, asset class mix, strategy maturity, and tools and data available to asset managers.
NZAMI was launched in 2020 and currently numbers 220 investors with $57.4 trillion in AUM. The organisation is managed by six founding partner investor networks. These include the Institutional Investor Group on Climate Change (IIGCC) and the Principles for Responsible Investment.
Stephanie Pfeifer, CEO of the IIGCC, says: “It has been remarkable to see the level of commitment coming from the global asset management community when it comes to tackling climate change and decarbonising the global economy. We continue to see a significant number of investors making net zero commitments, but importantly are now also seeing action on those commitments as asset managers begin to share their targets. However, there is still work to do if we are to meet the goals of the Paris Agreement. I look forward to seeing these targets put into action and would encourage the investors who will be disclosing over the coming months to match – or exceed – the ambition set out by the first wave of signatories.”