Asset managers take the initiative in addressing climate change

GAM has joined an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner and to supporting investing aligned with this goal. The Net Zero Asset Managers initiative (NZAM) now comprises 128 investors, collectively managing USD 43 trillion in assets under management. Stephanie Maier, Global Head of Sustainable and Impact Investment at GAM, highlights the important role played by asset managers in addressing climate change.

4 August 2021

In line with the best available science on the impacts of climate change, there is an urgent need to accelerate the transition towards global net zero emissions. Our world is changing fast; in the last 70 years, there has been an unprecedented increase in carbon emissions creating a climate emergency with far-reaching implications for society. In 2015, the landmark Paris Agreement was reached, with the goal of limiting global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.

Asset and wealth managers control more than USD 110 trillion of capital and how these assets are managed will be key to whether or not we are able to achieve the shared global goal of net zero emissions by 2050 or sooner.¹ We firmly believe asset managers need to be at the forefront in driving that change, and designing solutions to help our clients navigate the low carbon transition.

As an active manager, we have the opportunity to develop thematic and highly targeted solutions to address specific ESG issues. Specifically, active managers have the flexibility to find investment opportunities in those companies enabling and providing solutions to drive the low carbon transition, as well as building close relationships with companies to influence their decision making. Engagement and stewardship are key levers in these activities, and as investment managers we can support both the companies we invest in and the clients we invest for in decarbonising in line with net zero goals.

We are active in collaborating with industry groups to address how as asset owners and asset managers we can collectively and effectively support decarbonisation.

Joining the NZAM initiative follows on from GAM’s commitment to support and report against the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations, and the publication of our Climate Change Statement.

GAM has also joined 457 investors in signing the Global Statement calling for governments to significantly strengthen their plans to cut carbon emissions in the next decade, and to bring in detailed targets for net zero emissions by 2050 or sooner.