With 41 more firms joining the Net Zero Asset Managers initiative, close to half of all global assets under management are committed towards net zero goals, according to the initiative’s statement released on Tuesday.
The group of fund managers aims to reduce the carbon footprint of clients’ portfolios and reach net zero goal by 2050.
The expansion of the initiative to 128 signatories, who manage $43 trillion out of $100 trillion in the asset management industry, shifted the industry close to a “net zero tipping level”.
The new asset managers will boost the efforts to deal with climate change and decarbonize the global economy.
HSBC Asset Management and Amundi are among major companies who have joined the net-zero plans. Earlier, HSBC committed to end financing the coal industry.
Nicolas Moreau, the CEO of its Asset Management division stated their firm is committed to addressing climate change as the world moves towards net zero carbon.