“Addition of 43 new asset managers triples size of fast-expanding investor-backed climate group”

BlackRock and Vanguard, who have a combined $14 trillion under management, have now signed up and demands ” that members pledge to achieve net zero across their investment portfolio by 2050 and establish a 2030 target consistent with global climate goals for the coming decade within 12 months of signing up to the alliance.”

The Net Zero Asset Managers initiative has meant the wave of new signatories means “more than a third of all of the world’s assets under management” are now committed to the initiative and pursuing net zero.

So what?

As there is a growing wave of action on climate targets, major players in finance systems committing to net zero mean that there is hope for the growth and speed of financial institutions moving their portfolios to incorporate climate and environmental risks.

A shared understanding of net zero (or preferably moving towards “net positive”), and consistent metrics and reporting within financial services still have a ways to go to answering to the scale of the climate crisis, but growing attention and resources from some of the largest and most influential players are part of the growing tide.