NZAM Coalition Hits Pause Amid U.S. Political Backlash

The Net-Zero Asset Managers (NZAM) coalition has suspended activities after BlackRock's withdrawal due to U.S. political pressure. The group's pause aims to reassess its climate commitments amidst escalating regulatory challenges and legal inquiries in the U.S. financial sector.

The Net-Zero Asset Managers (NZAM) initiative, formed to align the asset management industry with global climate goals, announced a suspension of activities this Monday. The decision follows the high-profile exit of BlackRock, the world's largest investment firm, citing political pressures from the United States.

Amid the suspension, concerns arise that this may signal a reduced effort by companies toward climate change initiatives, even after experiencing the hottest recorded year globally. BlackRock's decision came after months of mounting pressure from U.S. Republican figures due to the firm's approach to fossil fuel investments.

The coalition, which includes over 325 signatories managing more than $57.5 trillion in assets, is now reviewing its activities to remain relevant in the changing global climate policy landscape, as political scrutiny mounts ahead of a new U.S. administration.

(With inputs from agencies.)