T. Rowe Price announced that he has joined the Net Zero Asset Managers initiative to support the goal of achieving net zero greenhouse gas emissions by 2050 or earlier.
Signatories to the initiative, which was launched in 2020, pledge to reduce emissions in line with global efforts to limit warming to 1.5 degrees Celsius.
“A growing number of our customers are setting net zero goals and demanding products that meet their needs,” said T. Rowe Price CEO and President Rob Sharps.
“Joining the Net Zero Asset Managers initiative allows us to help our clients achieve their net zero ambitions in a way that is consistent with our fiduciary duty to our clients. We are delighted to be part of this important initiative. »
The Net Zero Asset Managers initiative had 236 signatures with $57.5 trillion in assets under management at the end of last year.
“By establishing a net zero product line, we want to promote a common industry standard, which we believe will ultimately provide greater transparency for our clients,” said Maria Elena Drew, Research Director for Responsible Investing, T. Rowe Price.
“We intend for our net zero investment products to use the Paris Aligned Investment Initiative net zero investment framework, which is designed to enable the real economy to transition to net zero.”
BlackRock, Vanguard, UBS, Fidelity and State Street Global Advisors (SSGA) are among other signatories to the initiative.
In a progress report released at COP26 last year, the Net Zero Asset Managers initiative said 43 signatories had already committed 35% of their combined US$11.9 trillion in assets under management to net zero.
“The collaboration of global asset managers is a critical contribution as the world transitions to a decarbonized economy. We look forward to seeing strong action and growing commitments from investors to achieve their goals,” he told the then Rebecca Mikula-Wright, CEO of the Asian Investors Group on Climate Change and the Investors Group on Climate Change.
If signatory disclosures remain consistent, the Net Zero Asset Managers initiative said more than US$20 trillion could be managed in line with net zero and subject to targets consistent with reducing emissions by 50% by 2030 .
Jon Bragg is a reporter for Investor Daily from Momentum Media, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.