The United Nations-backed Net Zero Asset Managers (NZAM) initiative will relaunch in January 2026 with scaled-back requirements for its members, including the removal of mandatory 2050 net-zero targets.
In a statemen, NZAM said the change was made “to reflect diverse jurisdictional realities and accommodate signatories from a wider range of markets.” The revised framework follows a comprehensive review and six months of stakeholder consultations aimed at strengthening the initiative’s global inclusivity.
The group suspended operations in January 2025, shortly after BlackRock, the world’s largest asset manager, withdrew from the alliance. The exit came amid a series of departures by major U.S. financial institutions from another UN-aligned coalition — the Net-Zero Banking Alliance (NZBA) — ahead of the inauguration of President Donald Trump.
At the time, NZAM attributed its suspension to “recent developments in the U.S. and different regulatory and client expectations”, noting that it would reassess its commitments. The organisation confirmed this week that its review is complete and that the relaunch will proceed with a renewed mandate and updated commitments.
According to NZAM, the revisions acknowledge that the “investment landscape has evolved significantly” since the initiative’s launch in 2020. The new approach aims to retain ambition while remaining practical and globally inclusive.
The updated commitment statement reiterates alignment with the Paris Agreement:
“Signatories recognise the importance of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and continuing efforts to limit it to 1.5°C,” the release stated. “In this context, signatories commit to support investing aligned with the global goal of net-zero greenhouse gas emissions.”
Under the refreshed framework, members will continue to set individual targets, implement stewardship practices and report annually on progress. NZAM will re-publish its list of signatories and resume target-setting and implementation support activities once operations restart.
State Street confirmed that only its European and UK entities — State Street Global Advisors Europe Limited and State Street Global Advisors Limited (UK) — will remain signatories when the initiative relaunches, with its U.S. division stepping back. The firm said this decision “will have no impact on our commitment to delivering sustainable investing solutions to our clients.”
By maintaining its signatory-based model, NZAM has opted to continue operating where others have folded. The Net-Zero Banking Alliance, by contrast, ceased operations earlier this month following further withdrawals from U.S. and Canadian banks, transitioning instead to a guidance-based structure.
