Net Zero Asset Managers initiative publishes report on signatories’ target disclosures as the initiative grows to over 325 signatories

• As of 31 January 2024, the total number of asset managers that have set individual initial targets increased to 264. 

• Most targets focus on real economy decarbonisation. Decarbonisation targets are the predominant target type (62.5%), followed by alignment targets (53%), and engagement targets (23%). 

• 98% have set interim targets for/before 2030, with 26% targeting as early as 2025. 

The Net Zero Asset Managers (NZAM) initiative has released its latest Target Disclosures Report, which highlights the increase in voluntary, individual net zero commitments and targets from the asset management industry over time.

The full report – Net Zero Asset Managers Target Disclosures Report 2024– can be accessed here.
All target disclosures can be found here.

Since the last target disclosures announcement, more than 30 asset managers have joined the initiative and over 90 have disclosed targets. As of 31 January 2024, 264 signatories have set and disclosed targets to guide their individual net zero investment practices. 

The report highlights the significant growth of the initiative since its inception in December 2020. Currently, more than 325 asset managers, representing over USD 57.5 trillion in assets under management, have made individual commitments, consistent with their fiduciary duties to clients and beneficiaries.

The report gives new insights into the geographical makeup of the initiative’s signatory base and details the target-setting methodologies used. It offers an overview of the types of targets and combinations utilised, providing signatories with valuable benchmarking opportunities and insight into industry-wide trends. 

Key highlights include: 

• Target types: Reflecting signatories’ collective ambition of mitigating financial risk through real economy decarbonisation, decarbonisation targets emerged as the predominant  target type (62.5%). 53% of signatories with target disclosures have set alignment targets, and 23% have set engagement targets.

• Target years: NZAM signatories are taking the imperative to address climate risk in the short term as well as long term, with 98% having set interim targets for or before 2030, and over a quarter (26%) having a first target of next year, in 2025.

• Methodological approaches: 51% of disclosing signatories use Paris Aligned Investment Initiative’s Net Zero Investment Framework; 22% use Science Based Targets initiative for Financial Institutions; 14% use the Net Zero Asset Owner Alliance Target Setting Protocol, 12% use a combination of the above methodologies, and 10% chose to use their own unique methodology. 

• Asset classes: Listed equities and corporate fixed income have the highest inclusion rates. 

• Geographical breakdown: The initiative reflects a global commitment with the signatories being headquartered in over 35 countries. Europe leads in representation, with over 200 signatories, followed by North America with over 70, and Asia with over 20. Oceania follows with 17 signatories, whilst South America and Africa have seven and one signatory, respectively. 

Members of the NZAM Steering Committee: 

Rebecca Mikula-Wright, CEO of Asia Investor Group on Climate Change (AIGCC) and Investor Group on Climate Change (IGCC), said: “Today’s Target Disclosures Report demonstrates the growing commitment asset managers have made towards the goal of net zero. The increase in asset managers setting and disclosing targets highlights our industry’s proactive stance on mitigating the financial risk associated with climate change. This momentum must continue in the Asia-Pacific. We now need to see more granular and ambitious interim targets that work towards real economy decarbonisation goals. Investors who have set and disclosed their targets are at a competitive advantage, showing their ability to manage the risks and opportunities in the global transition to a net zero economy.” 

Mindy Lubber, CEO and President of Ceres, said: “This latest target disclosures report highlights the meaningful progress of asset managers in addressing risks and opportunities as they transition to a net zero future. It’s encouraging to see asset managers worldwide setting ambitious net zero emissions targets and implementing concrete transition plan strategies to address climate risks and seize investment opportunities across their portfolios.” 

Stephanie Pfeifer, CEO of IIGCC, said: “The report provides further evidence of investors taking action to address the financial risks and opportunities associated with arguably the major trend of our time – the decarbonisation of the global economy. While there are commitments and examples of progress from hundreds of investors globally, its notable that Europe has the highest representation with over 200 signatories – this suggests a more conducive policy and regulatory environment, particularly in the UK and across the EU.”

About Net Zero Asset Managers

 The Net Zero Asset Managers initiative (NZAM) is an investor-led initiative. Through NZAM, more than 325 independent asset managers responsible for over USD 57.5 trillion in assets under management have committed, consistent with their fiduciary duty to their clients and beneficiaries, to support the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C; and to support investing aligned with net zero emissions by 2050 or sooner. 

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