The Net Zero Asset Managers (NZAM) initiative, a major multi-trillion dollar group of investment managers committed to supporting the goal of net zero greenhouse gas emissions by 2050, announced that it will suspend its primary activities, as it moves to adapt to a changing political and regulatory environment.

The move follows an announcement by BlackRock, the largest global investment management company, and an early NZAM signatory, that it had decided to leave the group, in a letter to clients that said that its membership in the coalition “caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials.”

The move may also be aimed at staving off a repeat of a rapid exodus experienced by NZAM’s sister coalition, the Net-Zero Banking Alliance (NZBA), which saw all major U.S. banks leave within a month, following the initial exit of Goldman Sachs in early December.

The flood of departures from the net zero coalitions comes in the context of the upcoming inauguration of Donald Trump, and following years of pressure on financial services participants in the groups from a vocal anti-ESG movement by Republican politicians in the U.S., with claims that participation in the climate initiatives amounted to “boycotting energy companies,” or various forms of collusive or anti-competitive behaviors, or that they were not in the best fiduciary interests of clients.

In a statement announcing the move, NZAM said:

“Recent developments in the U.S. 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. “

NZAM was launched in December 2020 with a group of 30 asset managers representing approximately $9 trillion of assets under management (AUM), and by early 2025 included more than 325 signatories and over $57 trillion in AUM.

Signatories to NZAM agreed to a series of commitments aimed at supporting the goal of net zero GHG emissions by 2050. Commitments included working with asset owner clients on decarbonization goals, setting and reviewing interim targets for a proportion of assets to be managed in line with net zero by 2050, tracking portfolio emissions, prioritizing the achievement of emissions reductions in the sectors and companies in which they invest, and implementing a stewardship and engagement strategy – including a voting policy – consistent with a net zero by 2050 portfolio goal, among others.

In its update statement, NZAM announced that while it reviews the initiative, it will suspend the tracking of signatory implementation and reporting, and that it will remove its commitment statement from its website, along with the list of signatories, as well as their targets and related case studies.

NZAM said:

“As a voluntary initiative, NZAM has successfully supported investors globally as they have sought to navigate their own individual paths in the energy transition in line with their fiduciary duties and clients’ long-term financial objectives. NZAM looks forward to continuing to play this constructive role with investors around the world.”