Just yesterday – and in the wake of BlackRock’s defection – the Net Zero Asset Managers (NZAM) initiative announced it is suspending its activities:
“Recent developments in the U.S. 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. 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.”
Are we seeing the end of Net Zero collaborations broadly? Maybe – but to be objective, 2024 and the results of the US presidential election are the first real tests of its organizational grit. I’ve written previously about my opinion that initial membership in the Net Zero coalitions was then seen as either virtue signaling or a result of the companies not understanding the commitments to which they were agreeing. Reality is now setting in.
Thinning out the herd may ultimately prove successful. On the other hand, the ranch may be lockin’ the gates and closin’ its doors.
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