Takeaways

• The Net Zero Asset Managers Initiative (NZAM) has relaunched with over 250 asset manager signatories after a one-year pause.
• The updated commitment removes the explicit 2050 net zero target but keeps a focus on climate-related financial risks and near-term climate targets.
• Several major U.S. firms remain absent amid ongoing political and legal scrutiny around ESG investing.

The Net Zero Asset Managers Initiative has officially relaunched, marking a new chapter for one of the world’s largest climate-focused investment coalitions. More than 250 asset managers have signed on to the updated initiative, including several major global firms. However, some high-profile U.S. investment giants are notably missing.

Originally launched in December 2020, NZAM began with 30 asset managers representing around $9 trillion in assets under management (AUM). By early 2025, the group had grown to more than 325 signatories overseeing over $57 trillion in AUM. Members committed to aligning their portfolios with the goal of achieving net zero emissions by 2050, tracking portfolio emissions, setting interim targets, and engaging with companies on decarbonization.

But rising political pressure in the United States forced a pause. Climate alliances like NZAM faced criticism from anti-ESG lawmakers, particularly after the election of Donald Trump. Critics claimed such initiatives amounted to boycotts of energy companies or violated fiduciary duties.

Read More: Net-Zero Banking Pact Halts as Banks Go Independent

In late 2024, several state Attorneys General filed a lawsuit against major asset managers, including BlackRock, Vanguard, and State Street, alleging antitrust violations tied to their involvement in sustainable investment groups.

Soon after, BlackRock exited NZAM, citing legal scrutiny. The initiative then suspended its activities and removed its commitment statement and signatory list while it conducted a review.

What Has Changed?

The relaunched NZAM introduces a revised commitment framework. Notably, it removes explicit references to investing in line with a 2050 net-zero target. Instead, the coalition now emphasizes that signatories independently set their own net zero commitments and implementation strategies.

The updated statement highlights asset managers’ fiduciary duty to consider climate-related financial risks and opportunities. It references the temperature goals of the Paris Agreement, including efforts to limit global warming to 1.5°C, but avoids mandating a specific 2050 alignment timeline.

Signatories now commit to setting near-term climate targets consistent with global net zero emissions goals. They also pledge to implement investment stewardship strategies, support clients in transition finance and climate solutions, and publicly disclose implementation plans with annual reporting.

Dan Grandage of Aberdeen Investments said the changes reflect the evolution of climate investing, i.e., moving beyond pure portfolio decarbonization to include transition investing, adaptation, and resilience.

Who’s In and Who’s Out?

The updated signatory list includes major European asset managers such as UBS Asset Management, Amundi, and BNP Paribas Asset Management.

However, several large U.S. firms remain absent, including BlackRock, Vanguard, JPMorgan Asset Management, Invesco, and Goldman Sachs Asset Management. State Street’s European business continues to participate, while some firms have retained only their European arms within the coalition.

Also Read: Google Quietly Removes Net-Zero Pledge Amid Rising AI Energy Demand

Rebecca Mikula-Wright, Chair of the NZAM Steering Committee, said the strong participation in the relaunch shows the value asset managers see in having a transparent platform to demonstrate how they address climate-related financial risks and capture transition opportunities.

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Source: ESGtoday