JPMorgan Chase & Co’s asset management division has formally exited the Net Zero Asset Managers (NZAM) initiative, dealing a significant blow to the flagship climate coalition that had already suspended operations earlier this year.
In a statement issued by a representative of JPMorgan Asset Management (JPMAM), the firm cited the ongoing pause in NZAM’s activities since January and referenced “developments in the regulatory environment and client expectations” as reasons for its withdrawal. The company offered no further comment, and NZAM organisers have also remained silent.
The departure follows mounting pressure from U.S. Republican lawmakers—particularly from states with strong fossil fuel interests—who have accused major financial institutions of collusion to restrict emissions. Asset managers have consistently denied such claims.
Established in December 2020, NZAM was created to align the global fund management industry with net zero climate goals. At the beginning of 2024, it boasted more than 325 signatories overseeing in excess of $57.5 trillion in assets.
However, the initiative has seen growing instability in recent months. BlackRock, the world’s largest asset manager, withdrew from NZAM in January, prompting a suspension of the group’s core activities. JPMorgan also exited the Net Zero Banking Alliance—a parallel climate finance initiative—during the same period.
The retreat of such major financial players underscores the growing tension between climate commitments and political pushback, particularly in the United States. The future of voluntary climate finance coalitions like NZAM remains uncertain as financial institutions recalibrate their environmental pledges in the face of mounting scrutiny.
