- Last week Blackrock, the world’s largest asset manager with around $11.5 trillion under investment, exited Net Zero Asset Managers (NZAM), an initiative to help investors mitigate the material financial risks of climate change and to realise the enormous benefits of the economic transition to net zero.
“We are disappointed to see any investor withdraw, but as a voluntary initiative, we respect any individual decisions signatories take,” said NZAM in a statement.
“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,” added NZAM.
NZAM 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.
The news follows the recent exit of Citi, Bank of America, and JP Morgan from Net Zero Banking Alliance (NZBA), a similar organisation to NZAM servicing the banking sector.
Trump Presidency
The corporate fallout from climate change alliances may have to do with the incoming Trump Presidency. Donald Trump will officially be sworn in as the new US president today. Trump has indicated that he will scrap Joe Biden’s climate policies which includes a series of directives, laws and funding programmes aimed at boosting green jobs, regulate pollution and fund climate friendly infrastructure projects.
Trump is also expected to remove drilling restrictions on federal land plus increase US energy production and independence. He has also pledged to ban new wind projects and cancel electric vehicle mandates.
Trump is also expected to withdraw the USA from the Paris Agreement as he did in his first term.
Author: Bryan Groenendaal
