US asset managers ‘unlikely’ to return to NZAM
The largest US asset managers are unlikely to rejoin the Net-Zero Asset Managers initiative (NZAM), which relaunched in January, according to Lindsey Stewart (pictured), director of institutional content at Morningstar.
NZAM was relaunched at the start of 2026 with a new commitment statement that has removed references to 2050 and 1.5 degrees targets. It follows a suspension of activities in January 2025 amid a number of US firms, including BlackRock and Vanguard, exiting the initiative.
At the time, NZAM announced it would be carrying out a review to ensure the signatory commitments remained fit for purpose in a global context. Throughout the year it engaged “hundreds of stakeholders”, before updating the text to reflect feedback for a clear, globally inclusive framework that retains ambition and continues to be practical in an evolving landscape, as PA Future reported last year.
Royal London Asset Management has recently reaffirmed its commitment to NZAM saying the “less prescriptive” changes from the previous version create a “durable, pragmatic structure” that “accommodates differing regulatory, contractual, and fiduciary contexts across markets”.
However, this is unlikely to entice the large US asset managers back to the initiative, according to Morningstar’s Stewart.
“Climate-conscious investors will eagerly anticipate the relaunch of the Net Zero Asset Managers initiative following its year-long hiatus. The revised goals of the initiative are likely to look considerably different from its original objectives, with the initiative seeking to accommodate ‘diverse regional realities’, which can be understood to include legal and regulatory pressure on signatories in the US.”
He also highlighted specific net-zero targets for 2050 are reported to have been removed, in order to accommodate asset managers around the world.
“The big question is whether former signatories in the US intend to rejoin. BlackRock highlighted the role of ‘legal inquiries from various public officials’ when announcing its NZAM exit decision in January 2025. Legal pressure on stewardship activities in the US has, if anything, increased in the months since then, with subsequent legal and regulatory action on shareholder resolutions and the use of proxy advisors adding to scrutiny over climate-conscious investing. So, it is unlikely the conditions exist for the return of many of the largest US asset managers to NZAM.
“We’re likely to see a new signatory list dominated by large asset managers in European and Asia-Pacific jurisdictions, encouraged by climate conscious asset owners with a longer investment horizon to maintain their climate ambitions amid current challenges.”
NZAM activities are expected to resume later this month.