2025 wasn’t an easy year for the Net Zero Asset Managers (NZAM) initiative. Last January, the group suspended activities. This came after anti-ESG pressures in the US led to multiple high-profile exits from the group. Then, in November, the group announced its intentions to loosen signatory requirements and resume operations after a three-month review period. Now that the review period has almost run, the deadline for signatories to opt out is today. Responsible Investor reports:
“Members were given a three month deadline to review the new statement on an opt-out basis, set to conclude later this week. As of January 2024, the last date that the initiative disclosed membership numbers, 264 firms had set initial targets and 325 had signed up. A spokesperson for NZAM confirmed that ‘the signatory consideration period for the updated NZAM commitment statement concludes on 29 January.'”
The article notes that many asset managers are still on the fence about remaining in NZAM. While the relaxed requirements are an incentive, asset managers aren’t convinced that they are enough to stop political backlash in the US. The future of NZAM raises questions about the usefulness and future of climate pacts generally. Climate Action 100+ and the Net Zero Banking Alliance (NZBA) have both seen major defections, with the latter shuttering and restructuring last year. We’ll see how many asset managers choose to remain in NZAM and how the market responds to the organization coming out of hibernation.
Our members can learn more about sustainability in the financial services sector here.
If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information compiled without the use of AI.
Are you a client of one of our Partners – SourceIntelligence, TRC, Kumi, Ecolumix, Elm Consulting Group International or Impakt IQ? Contact them for exclusive pricing packages for PracticalESG.
Practical Guidance for Companies, Curated for Clarity.
