Climate Investment Group Returns with Relaxed Standards After US Political Pressure

A major climate investment initiative has restarted operations with more flexible requirements after facing political opposition that led BlackRock and other major US firms to withdraw. The group now has over 250 members but significantly fewer American participants than before.

A major climate-focused investment alliance resumed operations Wednesday with relaxed membership requirements following intense political pressure that drove away dozens of American financial firms, including investment giant BlackRock.

The Net Zero Asset Managers initiative welcomed back more than 250 member companies after being shut down for a full year while leadership conducted an extensive review of its policies and procedures.

The organization’s updated membership guidelines no longer mandate that participating firms structure their investment portfolios to achieve carbon neutrality by 2050, eliminating what was previously a core requirement. The revised standards also dropped obligations for companies to establish interim environmental targets.

These changes came in response to criticism from Republican lawmakers who argued that participation in such climate-focused coalitions could violate federal antitrust regulations. This political opposition led BlackRock, the world’s largest asset management company, to exit the group in early 2025.

Following BlackRock’s departure, 32 additional American firms withdrew from the initiative, including major players like Capital Group, JPMorgan Asset Management, and Franklin Templeton.

The political fallout significantly reduced American participation in the relaunched organization. Only 12 US-based companies rejoined, compared to the 44 American members before the suspension. Some firms like State Street Investment Management and Wellington Management chose to participate only through their European operations.

Rebecca Mikula-Wright, who chairs the organization’s steering committee, defended the remaining support level as meaningful. “The strong participation in today’s relaunch reflects the value NZAM signatories find in having a credible platform to demonstrate to their clients how they are addressing climate-related financial risks and capturing transition opportunities,” she stated.

Mikula-Wright added that the continued membership sends a “strong signal to clients, regulators and other key stakeholders” about participants’ commitment to addressing climate challenges.

Under the revised framework, member companies will independently establish their own environmental goals and develop customized strategies for reducing carbon emissions associated with their investments. They must provide annual progress reports on their efforts.

Dan Grandage, who serves as chief sustainable investment officer at Aberdeen Investments, explained the strategic shift. “The new statement reflects the evolution of climate investing from an original focus on decarbonising portfolios, towards a broader set of approaches that includes decarbonisation alongside transition investing, climate solutions, adaptation and resilience,” he said.