Royal London Asset Management (RLAM) has reaffirmed its membership of the Net Zero Asset Managers (NZAM) initiative following the climate change association’s updated framework.
However, many other former members are yet to reaffirm their own membership with the January 29 deadline approaching.
In rejoining the group, RLAM cited the updated framework’s allowance for a “more flexible and globally applicable foundation for climate‑aligned investing”.
NZAM suspended activities last year as it launched a review into its requirements amid a backlash against net zero initiatives in the US especially.
This led to organisations such as State Street withdrawing from NZAM in the US but remaining involved in Europe.
BlackRock was another high-profile withdrawal which left the initiative in January 2025, the same month that Donald Trump was inaugurated as US president.
An amended signatory statement was released by NZAM in October that notable removed references to 2050 and dropped requirements to set 2030 emission targets.
Members were given a three-month deadline to opt in to the signatory statement, making January 29 the critical date.
As of January 2024, NZAM had 325 signatory firms with 264 having set individual targets. It has not been disclosed how many of these signatories have followed RLAM in returning to the initiative.
RLAM’s head of climate transition and engagement, Carlota Garcia-Manas, explained the UK-based asset manager’s decision.
“While we recognise that some stakeholders may view the revised Commitment Statement as less prescriptive than the previous version, we believe the changes reflect an effort to create a durable, pragmatic structure that accommodates differing regulatory, contractual, and fiduciary contexts across markets,” said Garcia-Manas.
“We remain fully committed to supporting the goals of the Paris Agreement and to managing climate‑related financial risks in the best interests of our clients. To reinforce this commitment, we will pursue an NZAM+ strategy, maintaining the ambition and integrity of our existing climate commitments even where elements of the updated NZAM framework provide greater discretion.”
