Asset Management Coalition Suspends Activities Amid Political Backlash

The Net-Zero Asset Managers (NZAM) initiative has halted its activities following BlackRock's exit amid political pressure in the U.S. The move comes as the coalition reviews its alignment with global climate goals, impacted by differing regulatory expectations and Republican political backlash over ESG investment strategies.


Devdiscourse News Desk | Updated: 13-01-2025 23:35 IST | Created: 13-01-2025 23:35 IST
Asset Management Coalition Suspends Activities Amid Political Backlash

The Net-Zero Asset Managers (NZAM) initiative has suspended its operations, following the exit of BlackRock amid a political storm in the U.S. The decision comes as the coalition seeks to reassess its objectives and relevance in a changing global climate context.

BlackRock's departure was attributed to growing political scrutiny, particularly from Republican officials, over its climate change initiatives. The asset management giant, handling around $11.5 trillion, faced criticism for its stance on fossil fuel investments, especially with the incoming Trump administration heightening such pressures.

NZAM, comprising over 325 members managing $57.5 trillion in assets, announced a review of its activities to ensure alignment with international climate goals. This move aims to prevent a repeat of asset manager withdrawals that weakened another climate group, Climate Action 100+.

(With inputs from agencies.)

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