Engaging on “net zero” with asset managers

There are significant differences in how managers are approaching the challenge.

Aerial view through clouds of  windfarm on pastures.


Prudence Johnson-Hill
Sustainable Investment Analyst

The Net Zero Asset Manager (“NZAM”) initiative was launched in December 2020 and brings together international asset managers committed to aligning their investment activities with the goal of net zero emissions by 2050 or sooner. Since the launch, the economic and political landscape has shifted dramatically. Russia’s invasion of Ukraine led to a surge in energy prices and prompted many countries to focus on energy security, accelerating the energy transition. At the same time, the politicisation of climate change, particularly in the US, has made net zero an increasingly challenging topic for investors to navigate.

To better understand how asset managers are navigating the challenges of decarbonising portfolios, we engaged with 21 managers that we invest with. Together, these organisations are responsible for £27 trillion of assets under management (“AUM”). 77% are signatories to the NZAM initiative.

We share below the key takeaways from these engagements.

  1. Where a manager believes their fiduciary duty lies is the biggest factor in determining how much AUM, if any, they are willing to commit to net zero. We have seen a clear divide between managers operating in the US and Europe.
  2. Educating clients is key. Managers need to be able to provide clients with the tools, data and resources to understand climate risks in order to help them make informed decisions on their investment preferences.
  3. Managers need to be able to give clients products aligned with net zero in the form that they prefer.
  4. Engaging with underlying companies is the preferred tool for decarbonising portfolios. We encourage managers to focus on targeting the top emitters and putting engagement policies in place with clear, time-bound targets.

To read more, download the full article here.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.


Prudence Johnson-Hill
Sustainable Investment Analyst


The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.