The ESG backsliding in the US continues apace with Northern Trust Asset Management joining the recent mass exodus of financial institutions from climate-related pacts.
Northern Trust is one of the latest to abandon the, now-paused, Net Zero Asset Management (NZAM) initiative as well as another climate change investment industry body.
NZAM went on hiatus this month after the world’s largest fund manager, BlackRock, quit the lobby group.
Northern Trust Asset Management also exited the similar Climate Action 100+ (CA100+) body last week along with MFS and US credit manager, Muzinich.
A host of other big-name managers including the US arm of BlackRock, State Street, Franklin Templeton and JP Morgan Asset Management have already resigned CA100+.
The climate collective represents institutional investors committed to engaging on carbon emissions with about 170 companies that are among the world’s largest greenhouse gas-producers.
Last October CA100+ reported 90 new signatories had come aboard since the previous June for a net gain of 19 members after a flood of US-based firms had jumped ship.
In a statement, Northern Trust Asset Management said the climate group departures reflect “our confidence that we can independently and effectively manage material risks and engage with portfolio companies to safeguard and grow our clients’ capital”.
“We have made and continue to make investments that support our independent stewardship and sustainable investing capabilities,” the release says.
Also late last year, Northern Trust Asset Management global head of sustainable investing and stewardship, Julie Moret, has left the US$1.3 trillion manager just three years after joining the firm from Franklin Templeton.
Northern Trust Asset Management has a number of large institutional mandates in NZ including with the NZ Superannuation Fund, ANZ Investments and Westpac/BT.
Another climate group, the Glasgow Financial Alliance for Net Zero (GFANZ) dropped a requirement late last year that members must have a formal net zero target.
A statement signed by the heavyweight GFANZ leadership of Michael Bloomberg, Mark Carney and Mary Schapiro said the group would instead “allow any financial institution working to mobilize capital and lower the barriers to financing energy transition to participate”.
GFANZ launched in April 2021 with a mandate to bring “together CEOs and leaders from the financial services sector to support the transition to a net-zero economy”.