BlackRock Exit: Net Zero Asset Managers Suspends Activities

The Net Zero Asset Managers initiative (NZAM) has suspended its activities from 13 January 2025 to undergo a review after the exit of finance giant BlackRock on 9 January.
“We are disappointed to see any investor withdraw, but as a voluntary initiative, we respect any individual decisions signatories take,” it says.
“Climate risk is financial risk. NZAM exists to help investors mitigate these risks and to realise the benefits of the economic transition to net zero.”
According to reports, BlackRock said in a letter to clients that its NZAM membership “caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials.”
What is the Net Zero Asset Managers initiative?
Upon initiating its initiative review, NZAM removed its commitment statement and list of signatories from its website.
It has also suspended activities to track signatory implementation and reporting.
Prior to its removal, the commitment held signatory organisations to supporting the goal of net zero greenhouse gas emissions by 2050 in line with global efforts to limit warming.
This included commitments such as:
- Working in partnership with asset owner clients on decarbonisation goals
- Setting and regularly reviewing interim targets for the proportion of assets to be managed in line with net zero goals
- Setting targets consistent with a “fair share” of a 50% global reduction in CO₂
Asset managers sued over coal reduction
In November 2024, Texas Attorney General Ken Paxton sued BlackRock alongside State Street Corporation and Vanguard Group for “conspiring to artificially constrict the market for coal through anticompetitive trade practices”.
This complaint was joined by the Attorney Generals of Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia and Wyoming.
A press release from the Texas Attorney General’s Office says: “Blackrock, Vanguard, and State Street utilised the Climate Action 100 and the Net Zero Asset Managers Initiative to signal their mutual intent to reduce the output of thermal coal, which predictably increased the cost of electricity for Americans across the United States.”
The lawsuit says that the three asset managers collectively own significant portions of coal producers including Peabody Energy and Arch Resources.
Attorney General Paxton said: “Texas will not tolerate the illegal weaponisation of the financial industry in service of a destructive, politicised ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply and raise prices.
“Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”
The complaint reads: “The signatories to the Net Zero Asset Managers Initiative specifically commit to phasing out coal investments”.
It later says: “After joining NZAM, Defendant BlackRock, acting through the subsidiaries, affiliates and investment trusts it manages and over which it exercises control, acquired even more shares in, and greater influence over, the Coal Companies.”
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