NZAM initiative suspends activities amid rising political pressure

January 17th, 2025

The Net Zero Asset Managers initiative (NZAM) has suspended its activities following BlackRock’s departure and growing political pressure in the US.

The group, which aims to align the asset management industry with global climate goals, said that recent developments in the US and varying regulatory and client expectations across jurisdictions have prompted a review of the initiative.

The review aims to ensure that NZAM remains fit for purpose in the “new global context.” During this process, the group will pause activities related to tracking signatory implementation and reporting.

NZAM will also remove its commitment statement and list of signatories from its website, as well as their targets and related case studies until the review is complete.

The move comes as Blackrock, the world’s largest asset manager, chose to leave the voluntary initiative following months of pressure from some Republican politicians over its stance on investing in fossil fuel companies.

In fact, a Texas federal judge recently ruled that American Airlines violated federal law for allowing BlackRock to consider ESG factors in the airlines’ employee retirement plan.

A coalition of 11 US states also filed a lawsuit against Blackrock, as well as State Street and Vanguard, accusing them of using their shares in major oil companies to pressure some of the largest US coal producers to accommodate to green energy targets.

At the time of Blackrock’s departure, NZAM said: “We are disappointed to see any investor withdraw, but as a voluntary initiative, we respect any individual decisions signatories take,

Climate risk is financial risk. NZAM exists to help investors mitigate these risks and to realise the benefits of the economic transition to net zero.”

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

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