NZAM initiative scraps 2050 net zero target requirement for members

The Net Zero Asset Managers (NZAM) initiative has opened a ‘new chapter’ in which members are no longer required to target net zero by 2050.

By removing this criteria for membership, NZAM follows the trend set by the the Glasgow Financial Alliance for Net Zero (GFANZ) and the Net Zero Banking Alliance (NZBA), which started by loosening target-setting requirements for members, and ended up shifting from membership alliances to framework initiatives providing decarbonisation guidance for the financial industry.

The decision comes after six months of ‘comprehensive review’ undertaken by NZAM after losing high-profile member BlackRock in January, amid a mass exodus from net zero finance initiatives after Donald Trump’s reelection as US President.

“In under six months, hundreds of stakeholders were engaged, including signatories and non-signatory asset managers as well as 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,” explains NZAM in a statement.

The headline change in the commitment statement is the removal of references to 2050 “to reflect diverse jurisdictional realities and accommodate signatories from a wider range of markets”, the initiative adds, noting that members will continue to set individual targets and report annually on their progress.

NZAM to resume activities in January

With this announcement, NZAM is ready to resume its activities after a long pause. It will help signatories set and implement targets in January 2026, and list these signatories again on its website.

Current members and partners appear supportive of this next chapter. “As a mutual insurance company and Asset Owner, we have observed for over 30 years the rising frequency and severity of claims linked to climate-related disasters. These events directly mirror the toll these disasters take on the real economy. At Aéma Groupe, the daily interaction between our Asset Owner and Asset Manager functions is constant. This essential and productive dialogue enables us to develop a strategic and holistic vision that transcends purely technical issues. We firmly believe in the value of initiatives that foster strong links and create synergies between AOs and AMs, which is precisely why we support the NZAM initiative,” said Adrien Couret, CEO of Aéma Groupe. 

For Brad Lander, New York City Comptroller, “NZAM is a critical organisation for the future of the climate finance ecosystem and our global effort to address climate change”. “As we experience the increasing harms of climate change on people and the economy globally, we need asset managers to play their part to mitigate climate change and protect long-term investment returns. We look forward to partnering with NZAM and its members to mitigate risks, seize opportunities, and secure strong economic outcomes for the future,” he added. 

Read also: Anti-ESG pushback: a chance for sustainable finance to grow into its own