On Feb. 25, the Net Zero Asset Managers (NZAM) initiative announced its relaunch with 253 signatories after suspending operations for a year. The relaunched coalition includes a revised membership commitment that no longer contains explicit references to aligning portfolios with a goal of reaching net zero emissions by 2050. The new pledge instead allows firms greater leeway to set their own climate targets and strategies.

As of October 2024, NZAM had reported 330 signatories overseeing $57.5 trillion in assets under management. In early 2025, BlackRock exited the initiative, citing legal inquiries from public officials. Soon after, NZAM suspended its activities and began reviewing its commitment framework. The group said it would reevaluate its plans and operations in light of “[r]ecent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions.”

The relaunch follows sustained political and legal scrutiny of climate-focused investor coordination in the United States. Republican state attorneys general and federal officials have argued that coordinated climate commitments by large asset managers raise antitrust concerns. NZAM said the revised framework clarifies that participating firms independently set their own climate targets and strategies and use the initiative to disclose how they manage climate-related financial risks and opportunities.

Before the suspension, 44 U.S. firms were members. Following the relaunch, 12 U.S. companies are members, with several large American asset managers remaining absent. The limited U.S. participation suggests many American firms remain cautious about joining climate alliances amid ongoing political and legal debate.

NZAM launched in December 2020 as part of the Glasgow Financial Alliance for Net Zero, which describes itself as “an independent, private-sector-led initiative focused on mobilizing capital and removing barriers to investment in the global transition,” with the goal of aligning financial institutions with reaching net zero greenhouse gas emissions by 2050.

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