State Street limits climate alliance membership

Global climate alliance Net Zero Asset Managers has announced updated commitments ahead of its relaunch after suspending operations following the re-election of US President Donald Trump.

Launched in 2020, the United Nations-backed NZAM is a group of over 300 investment firms who are targeting a goal of net zero emissions by 2050 and includes Australian fund managers such as Macquarie Asset Management, IFM Investors and Maple-Brown Abbott.

However, it announced earlier this year that it would be conducting a review of the initiative in light of the election of US President Donald Trump and the different regulatory and client expectations. This led it to remove its commitment statement and list of NZAM signatories from its website, as well as their targets and related case studies.

Major US members such as BlackRock, Goldman Sachs Asset Management and Northern Trust Asset Management had also announced in early 2025 that they would be departing the organisation. 

“Recent developments in the US and different regulatory and client expectations in investors’ respective jurisdictions have led to NZAM launching a review of the initiative to ensure NZAM remains fit for purpose in the new global context. Signatories will be consulted throughout the review process and informed of any updates in a timely and transparent fashion,” it stated at the time.

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On 29 October, NZAM issued a statement that it will relaunch at the start of 2026 following stakeholder consultation among asset managers and asset owners. It will also resume target and implementation support activities alongside the re-listing of signatories on its website. 

However, it will drop its flagship overarching goal of targeting net zero emissions by 2050 in favour of individual targets.

It said: “With the aim of delivering better investment outcomes, signatories recognise the importance of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and of continuing to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels, in line with the stated goals of the Paris Agreement. 

“In this context, signatories commit to support investing aligned with the global goal of net zero greenhouse gas emissions.

“References to 2050 have been removed to reflect diverse jurisdictional realities and accommodate signatories from a wider range of markets. Signatories will continue to set individual targets, implement their own stewardship strategies, and report annually on their progress.”

State Street reaction

However, global investment manager State Street has opted to limit its membership to only UK and European operations and referenced NZAM’s commitments as a reason for the change.

In a statement, it said: “After a review of the revised Net Zero Asset Managers (NZAM) commitments, State Street Investment Management will redefine its signatory status with NZAM to State Street Investment Management’s European entities. 

“Going forward, only the following State Street Investment Management entities will be signatories to NZAM: State Street Global Advisors Europe Limited and State Street Global Advisors Limited (UK).

“This redefinition of our NZAM signatory status will have no impact on our commitment to delivering sustainable investing solutions to our clients who hire us for our sustainable investment and reporting expertise and capabilities to help them achieve their net-zero goals.”