Doubling down: NZAM relaunch backed by 250 managers but largest US firms decline to join

Following a turbulent 2025, NZAM has confirmed its relaunch, with more than 250 asset managers backing the overhauled climate stewardship coalition.

The initiative announced in January 2025 that it was suspending its activities following a series of prominent departures, including BlackRock, the world’s largest asset manager.

The move came amid persistent legal and political pressures in the United States, where BlackRock and other large managers faced lawsuits from 11 Republican-led states over their alleged support for “climate cartels” through participation in climate stewardship coalitions.

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Softer commitment

At its peak in 2024, NZAM counted more than 325 members, including many of the world’s largest asset managers.

After more than a year reviewing its participation criteria, the initiative has now returned with a revised commitment statement and a new list of signatories. Rebecca Mikula-Wright, chair of NZAM’s steering committee, said: “Asset managers participating in NZAM send a strong signal to clients, regulators and other stakeholders that they are forward-looking, transparent investors, committed to managing climate-related financial risks and opportunities.”

The updated commitment has been significantly softened, easing previous expectations around setting formal net-zero targets and associated reporting. However, it continues to recognise the importance of limiting global temperature rises to well below 2°C above pre-industrial levels, in line with the Paris Agreement.

The new framework offers signatories greater flexibility in how they pursue these ambitions, stating that managers should act “where consistent with fiduciary duty and, where applicable, client mandates.”

Rather than presenting itself as a binding framework, NZAM is now positioning membership as an opportunity, offering implementation support and potential market differentiation for managers seeking to demonstrate leadership on climate risk and stewardship.

Agathe Masson, Reclaim Finance's sustainable investment campaigner warned that these softer commitments risk managers simply ignoring their promises: "It is good to see that the new NZAM commitment recognizes both the importance of limiting global temperature increase to 1.5°C above pre-industrial levels, and that asset managers have a fiduciary duty to consider how the financial risks and opportunities presented by climate change may impact client investment outcomes. But it leaves the door open for asset managers to ignore these responsibilities, arguing that these same fiduciary duties may prevent them from acting.

"The voices of asset owners are needed now more than never to ensure asset managers provide them with serious options to manage climate risks, including a focus on real-world decarbonization. No asset manager exacerbating systemic climate risks should be entrusted with investment from climate-conscious asset owners."

Notable absences

The coalition now counts more than 250 members but shows a clear geographic tilt towards Europe, the UK and Australasia, with large US firms notably under-represented.

Only 12 US managers have joined the relaunched initiative, including State Street Investment Management, the world’s fourth-largest asset manager. Meanwhile, BlackRock, Vanguard and Fidelity Investments have not signed the new commitment.

The relative retreat of US firms means that British, Swiss, Dutch, Canadian, Japanese and French managers now account for a much larger share of NZAM’s membership. However, those that have signed appear increasingly vocal in their support.

Among the firms reaffirming their support is Impax Asset Management. “Impax has reaffirmed its commitment to NZAM – we believe that managing climate-related financial risks is fundamental to delivering resilient, long-term value for our clients" Ian Simm, CEO of Impax, said.

The updated Commitment Statement reflects our approach: setting clear and transparent targets and delivering these through targeted investments, robust governance, and engagement with policymakers on the optimal approach to achieving the goals of the Paris Agreement.”

This view was echoed by Aberdeen. Dan Grandage, chief sustainable investment officer, said: “The new statement reflects the evolution of climate investing from an initial focus on decarbonising portfolios towards a broader set of approaches that includes transition investing, climate solutions, adaptation and resilience.

These approaches have complementary strengths across asset classes, investment styles and client objectives, supporting a more sophisticated integration of climate considerations.”

An emerging opportunity

Meanwhile, French asset management giant Amundi Asset Management highlighted the commercial opportunity in maintaining strong climate credentials.

“By prioritising solutions that reflect clients’ sustainability preferences, and maintaining active stewardship to support the transition to a low-carbon economy, Amundi delivers practical, consistent support as investors confront evolving economic realities” emphasised Jean-Jacques Barbéris, head of institutional and corporate clients and ESG at Amundi.

Indeed, the rebranding has received the backing of more than 50 major asset owners, collectively representing some $3.7trn in assets, inlcluding major Nordic, British and French pension funds.

In a statement released ahead of the rebrand, they called on asset managers to participate in NZAM, noting the initiative was aligned “with key principles that help guide best practice investment strategies”.

There are growing signs that climate alignment is influencing asset allocation decisions. A number of European, British and American pension funds have begun shifting mandates towards managers that better align with their climate ambitions.

Research published in 2025 by J.P. Morgan Asset Management found that more than two-thirds of the world’s 100 largest asset owners remain committed to maintaining a strong stance on climate change.

The report estimated that $17.9 trillion in assets are overseen by asset owners incorporating sustainability and active ownership considerations. While some of these assets are managed internally, the findings highlight a significant opportunity for external managers with robust climate and stewardship capabilities.

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