“However, we will only do so once our data gathering and analysis is complete on how emissions cuts can best be implemented,” she said in an emailed statement. Moret added that Northern Trust already employs “many of the practices outlined” within the framework, and is “committed to provide transparency around our plans once the data gathering and analysis are completed.”
A spokesperson for T. Rowe said the firm is “actively considering” joining the Net Zero Asset Managers initiative. A spokesperson for PGIM declined to comment.
GFANZ was convened by the United Nations in April and comprises six sub-alliances, plus the Paris Aligned Investment Initiative. Michael R. Bloomberg, the owner and founder of Bloomberg News parent Bloomberg LP, has been co-chair of GFANZ together with Carney since November.
A spokeswoman for GFANZ said the group has “engaged with firms across the entire global financial spectrum.” The alliance “would encourage anyone not part of GFANZ to join the race to zero and work with their peers, scientists, the UN and NGOs to accelerate the transition to a net-zero global economy,” she said.
Achieving net zero no later than 2050 is crucial to limiting the average temperature rise to 1.5 degrees Celsius. If humanity fails to meet the moment, the planet faces a potentially catastrophic trajectory of overheating, the UN has warned.
“It matters that some of the world’s largest asset managers refuse to act on climate change and continue to actively exacerbate the climate crisis,” said Colin Baines, investment engagement manager at Friends Provident Foundation, a charity that uses its endowment to push for a fairer and more sustainable economy.
He characterized the fiduciary concerns raised by some firms as “an excuse” for inaction. “There is nothing to stop asset managers adopting minimum standards or acting responsibly. It is entirely about the will to do it.”
While some climate activists have lambasted GFANZ as being a toothless branding exercise—Reclaim Finance called it “all talk, net-zero action”—few question the make-or-break necessity of achieving climate neutrality by 2050.
The more than 450 GFANZ signatories representing 40% of global finance assets—including BlackRock Inc., Vanguard Group Inc., JPMorgan Chase & Co. and Citigroup Inc.—have promised to use science-based guidelines to reach net-zero carbon-dioxide emissions by mid-century, and to provide 2030 interim goals.
While GFANZ is a voluntary alliance with no enforcement mechanism, the UN has said it’s working on a framework to monitor net-zero goals that will help ensure those making such pledges are held to account.
This article was provided by Bloomberg News.