Moneycontrol PRO
you are here: HomeNewsWorld

Fund managers commit $16 trillion to meeting net-zero target

The move, which includes Allianz Global Investors, BlackRock Inc. and Royal London Asset Management, represents $16 trillion in funds under management, and marks the latest commitment by the Net Zero Asset Managers initiative, according to a statement on Tuesday.

May 31, 2022 / 01:31 PM IST
Chimenys emit vapor at the Scholven coal-fired power plant operated by Uniper SE in Gelsenkirchen, Germany, on Saturday, May 21, 2022. S&P Global Ratings last week downgraded Uniper to the lowest investment grade level, a move that could prompt lenders to restrict access to credit and peers to demand more collateral to back trades. Photographer: Alex Kraus/Bloomberg

Chimenys emit vapor at the Scholven coal-fired power plant operated by Uniper SE in Gelsenkirchen, Germany, on Saturday, May 21, 2022. S&P Global Ratings last week downgraded Uniper to the lowest investment grade level, a move that could prompt lenders to restrict access to credit and peers to demand more collateral to back trades. Photographer: Alex Kraus/Bloomberg


Fund managers that committed to net-zero emissions by mid-century have now promised to manage 39% of their assets in line with that goal as a first step.


The move, which includes Allianz Global Investors, BlackRock Inc. and Royal London Asset Management, represents $16 trillion in funds under management, and marks the latest commitment by the Net Zero Asset Managers initiative, according to a statement on Tuesday.


Members of the initiative, which was set up in 2020 and is a subgroup of the Glasgow Financial Alliance for Net Zero, must support efforts to limit global warming to 1.5°C by setting interim targets and then achieving net-zero emissions across their entire portfolios. A group of 43 managers has now set such targets. An earlier cohort that included Aviva Investors and DWS announced net-zero-aligned assets back in November.

“Climate is a risk that can’t be divested from, so investors will need to use their influence over capital flows, their influence on companies and their voice to policy makers to speed up the transition to a net zero global economy,” said Rebecca Mikula-Wright, CEO of the Asia Investor Group on Climate Change and the Investor Group on Climate Change.

Bloomberg
first published: May 31, 2022 01:31 pm
Sections
ISO 27001 - BSI Assurance Mark