The Net Zero Asset Managers iniative (NZAM) is relaunching in 2026 with a new commitment statement that has removed references to 2050 and 1.5 degrees targets.
NZAM suspended activities in January amid a number of US firms, including BlackRock, exiting the initiative. NZAM announced it would be carrying out a review to ensure the signatory commitments remained fit for purpose in a global context.
This review has been carried out over the past six months where “hundreds of stakeholders were engaged”, according to a NZAM statement, including signatories, non-signatories and asset owners.
“The feedback was clear: retain ambition, remain globally inclusive, and ensure the commitment statement continues to be practical within the evolving landscape. The updated text reflects this,” it said.
References to 2050 have been removed from the commitment statement to reflect “diverse jurisdictional realities and accommodate signatories from a wider range of markets”, NZAM said. However, it added signatories will continue to set individual targets, implement their own stewardship strategies, and report annually on their progress.
Further, it said signatories continue to pursue efforts to limit the global average temperature increase to 1.5 degrees Celsius above pre-industrial levels, in line with the Paris Agreement, but wording has been changes so that signatories are now committed to “support investing aligned with the global goal of net zero greenhouse gas emissions”.
The statement also reflected on the evolution of the investment landscape since NZAM was created: “In 2020, the world was grappling with the onset of the Covid 19 pandemic, a global crisis that exposed systemic vulnerabilities and accelerated calls for resilience across industries. At the same time, the climate emergency was intensifying. Wildfires, floods, and record-breaking temperatures underscored the urgent need for addressing the financial implications of the climate crisis. It was in this context that the NZAM initiative was launched: a timely effort to create a platform for individual asset managers to publicly commit, in their own contexts, to aligning their portfolios with the goal of net zero emissions.
“Five years on, the investment landscape has evolved significantly – with NZAM and its signatories having contributed to that evolution. Asset managers have deepened their climate capabilities, regulatory frameworks have become more sophisticated, and clients are demanding greater transparency and accountability. Against this backdrop, NZAM undertook a comprehensive review to ensure the initiative remains relevant, practical, and globally inclusive.”
See also: Does membership of the Net Zero Asset Managers initiative matter to fund selectors?
Industry reaction
Faith Ward MBE, chief responsible investment officer for Brunel Pension Partnership, commented on the outcome of the review: “NZAM is a readily available, credible mechanism for asset managers to demonstrate client alignment with climate objectives and net zero commitments. Ensuring this alignment sits at the heart of Brunel’s philosophy and underpins how it evaluates asset managers and strategic partners. Industry coalitions like NZAM are critical to delivering efficient, effective climate action at scale, and we strongly support frameworks that raise the standard for consistency, transparency and real-world implementation.”
However, Reclaim Finance’s net zero researcher, Christophe Etienne said the update is “bad news”: “It comes as no surprise that NZAM is relaxing its requirements even more by removing all references to 2050 and the 1.5°C target. The initial commitment was already extremely weak and non-binding; this development confirms the financial sector’s disengagement and the weakening of net-zero alliances.
“But this is bad news for asset owners, particularly pension funds, who will have to redouble their efforts to identify asset managers who are serious about their fiduciary duty by genuinely taking climate risks into account, and who stay the course when political headwinds intensify.”
