- Nordea Asset Management joins 30 founding investor signatories to Net Zero Asset Managers
- The initiative will work in collaboration with clients to achieve target-based net zero goal by 2050 or sooner
Luxembourg, 11 Dec 2020 — Nordea Asset Management has joined a group of asset managers representing over $9 trillion of assets under management (AUM) in launching the Net Zero Asset Managers initiative. This is a leading group of global asset managers that commit to support the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C. They also commit to support investing aligned with net zero emissions by 2050 or sooner. Delivery of the commitment also includes prioritising the achievement of real economy emissions reductions within the sectors and companies in which the asset managers invest.
As part of the initiative, asset manager signatories have committed to:
- Work in partnership with asset owner clients on decarbonisation goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management;
- Set an interim target for the proportion of assets to be managed in line with the attainment of net zero emissions by 2050 or sooner; and
- Review their interim target at least every five years, with a view to ratcheting up the proportion of AUM covered until 100% of assets are included.
The commitment in turn recognises “an urgent need to accelerate the transition towards global net zero emissions and for asset managers to play our part to help deliver the goals of the Paris Agreement and ensure a just transition.”
Nils Bolmstrand, CEO, Nordea Asset Management: “Nordea Asset Management is very happy to be a founding member of this important group, which will be natural counterpart to the Net Zero Asset Owner’s initiative, and will help support the asset management industry in its necessary move towards full Paris compliance. The targets of the NZAM align fully with NAM’s internal climate targets, and we expect to see further development along these lines in the coming years.”
The launch of the Net Zero Asset Managers initiative comes ahead of the five-year anniversary of the Paris Agreement Saturday 12th December. A key ‘Climate Ambition Summit 2020’ event, co-hosted by the UK COP26 Presidency, the UN and France will mark the occasion and contribute to further climate action on the run up to next year’s COP26 climate conference.
The Net Zero Asset Managers initiative will be managed globally by six Founding Partner investor networks, namely: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). In turn, the initiative is endorsed by The Investor Agenda, of which the investor networks are all founding partners, along with UNEP FI.
Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change and Founding Partner of the initiative: “We talk a lot of tipping points in our sector, but 30 of the world’s leading asset managers with assets under management of over $9 trillion committing to the goal of net zero by 2050 really can help tip the balance in favour of the global economic transition to net zero. This is action – not simply words.”
“The scale and significance of the asset managers joining the Net Zero Asset Managers initiative sends a clear signal to the wider sector that the financial firepower of institutional investors will be committed to making real progress towards a net zero and resilient future. As we reach the fifth anniversary of the Paris agreement, we extend an open invitation to all asset managers to join us in the commitment, collaboration and cohesion that will drive forward this initiative and the net zero transition.”
To fulfil the requirements established by the initiative, signatories have also made a further nine commitments, including:
• Set interim targets for 2030, for assets to be managed in line with the net zero goal, consistent with a fair share of the 50% global reduction in CO2 identified as a requirement in the Intergovernmental Panel on Climate Change (IPCC) special report on global warming of 1.5°C.
• Take account of portfolio Scope 1 and 2 emissions and, to the extent possible, material portfolio Scope 3 emissions;
• Implement a stewardship and engagement strategy, with a clear escalation and voting policy, that is consistent with the ambition for all assets under management to achieve net zero emissions by 2050 or sooner; and
• As required, create investment products aligned with net zero emissions by 2050 and facilitating increased investment in climate solutions.
In demonstrating delivery against the Net Zero Asset Managers initiative commitment, signatories will also submit disclosures in line with the Task Force on Climate-related Disclosures recommendations and climate action plans through The Investor Agenda investor networks for review. This process will ensure the approach applied is based on a robust methodology, consistent with the United Nations Race to Zero criteria and that action is being taken in line with the commitment statement.
Building on strong global representation at launch, the initiative will continue to expand over the coming months. The initiative is also set to join the ‘Race to Zero’, the UNFCCC-led global campaign that brings together net zero commitments from a range of leading networks and initiatives across the climate action community.