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Drops 2050 net-zero requirement for investment portfolios

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Follows suspension of activities after BlackRock ( BLK ) exit

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Latest financial group to weaken rules after US backlash

By Simon Jessop

LONDON, Oct 29 (Reuters) - A flagship climate coalition

for asset managers has dropped some targets for members, a

document seen by Reuters shows, months after U.S. political

pressure prompted BlackRock ( BLK ) to leave and the group to

suspend its activities.

The decision by the Net Zero Asset Managers Initiative

follows similar steps at sister groups for banking and

insurance, all after attacks from Republican politicians who

accused them of being in breach of antitrust rules.

The move comes days ahead of the COP30 climate talks in

Brazil where many fund managers will gather at a series of

events linked to the global effort to decarbonise the economy.

2050 NET-ZERO GOAL FOR INVESTMENT PORTFOLIOS DROPPED

After BlackRock ( BLK ) left January 9 citing confusion over the

coalition's climate efforts and legal inquiries from public

officials, NZAM suspended its activities on January 13 and said

it would launch a review.

In a statement on its website, the group said it had since

consulted hundreds of stakeholders and the feedback was to

"retain ambition, remain globally inclusive, and ensure the

Commitment Statement continues to be practical within the

evolving landscape".

Among changes in the new 'Commitment Statement', the group

has dropped any explicit requirement on members to reach

net-zero emissions across their investment portfolios by

mid-century and to set interim 2030 goals.

The new statement says members will provide clients with the

information to understand and act on climate risks; support

clients to reach their climate goals; and to set near-term goals

consistent with the global net-zero goal, among others.

"The initial commitment was already extremely weak and

non-binding; this development confirms the financial sector's

disengagement and the weakening of net-zero alliances," said

Christophe Etienne, net-zero researcher at non-profit Reclaim

Finance.