BlackRock to quit climate alliance

BlackRock will announce its departure from the Net Zero Asset Managers initiative (NZAM) this week, REP understands. 

Sources close to the matter say it will quit the UN-backed body on Thursday, after briefing clients.

If so, the world’s largest asset manager will become the latest in a string of US financial heavyweights to exit such climate initiatives ahead of the inauguration of Donald Trump as President later this month. 

JP Morgan recently left the Net-Zero Banking Alliance, which sits alongside NZAM under the umbrella of the Glasgow Financial Alliance for Net Zero (GFANZ).

It followed announcements by Goldman Sachs, Wells Fargo, Citi, Bank of America and Morgan Stanley.

BlackRock’s peer Vanguard quit NZAM in 2022.

GFANZ recently scrapped the requirement for its members to be signed-up to a subgroup like NZAM, whose eligibility criteria includes a net-zero commitment. It is unclear whether any of the entities who have left the groups plan to ditch their net-zero commitments. BlackRock currently still has a net-zero commitment in place.

There is no suggestion that BlackRock plans to leave any other climate initiatives, and its international arm looks to set to remain involved with shareholder engagement network Climate Action 100+.

BlackRock declined to comment.

Real Economy Progress has approached the NZAM for comment.