T. Rowe Price has announced that it has joined the Net Zero Asset Managers initiative to support the goal of reaching net zero greenhouse gas emissions by 2050 or earlier.
Signatories to the initiative, which was launched in 2020, commit to reducing emissions in line with global efforts to limit warming to 1.5 degrees Celsius.
“A growing number of our clients are setting net zero targets and require products that meet their needs,” said T. Rowe Price CEO and president Rob Sharps.
“Joining the Net Zero Asset Managers initiative enables us to help our clients meet their net zero ambitions in a manner compatible with our fiduciary duty to our clients. We are excited to be a part of this important initiative.”
The Net Zero Asset Managers initiative had 236 signatures with US$57.5 trillion in assets under management as of the end of last year.
“In establishing a net zero product range, we want to promote a common industry standard, which we believe will ultimately provide better transparency for our clients,” said T. Rowe Price director of research for responsible investing, Maria Elena Drew.
“It is our intention that our net zero investment products will utilize the Paris Aligned Investment Initiative Net Zero Investment Framework, which is designed to allow for real economy transition to net zero.”
BlackRock, Vanguard, UBS, Fidelity and State Street Global Advisors (SSGA) are among the other signatories to the initiative.
In a progress report released during COP26 last year, the Net Zero Asset Managers initiative reported that 43 signatories had already committed 35 per cent 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 decarbonised economy. We look forward to seeing strong action and increasing commitments from investors to achieve their targets,” Rebecca Mikula-Wright, CEO of the Asia Investor Group on Climate Change and the Investor Group on Climate Change, said at the time.
If disclosures from signatories remain consistent, the Net Zero Asset Managers initiative said that more than US$20 trillion could be managed in line with net zero and subject to targets consistent with reducing 50 per cent of emissions by 2030.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, 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.
